401K tax

http://beginnersinvest.about.com/od/401k/a/aa122104a.htm?p=1

The other tax question on 401K, although you will get taxed when you get the money out, but you will not get them out all together, you will only get a small amount once at a time, when you don’t have a job, you will be at a lower tax bracket. So for tax benefits, it is reducing your high income tax bracket now to low tax bracket in the future.