The money you contribute is free from Federal and State taxes.

Your employer receives tax benefits for contributing to your 401(K) - this is extra money for you

There is a range of investment options and an expert does the actual investing according to your directions.

Any gains and earnings through this investment are also tax deferred.

You can take loans and hardship withdrawals from your 401(K) under certain circumstances

The money is deducted even before you receive your salary, thus making it easy to stick with regular saving and investing