Looking for a tax shelter
If you thought it was only the rich people that got all the tax breaks then think again. Today you will find many more users of a tax shelter among those earning a mid-level income. A tax shelter is a method by which a person can reduce their taxable income which then results in them paying fewer taxes to both state and Federal governments. One of the tax shelters that can be made available by employers is the 401K. With a 401K plan funded with pre-tax dollars and with deferred taxes on its earnings, its a fairly simple and popular tax shelter.