<prompt> Human: I am 20 years old, I am not sure if it is too early to start a 401k. I just got a job offer for 45k. Employer is willing to match up to 3. I currently have 300 credit card debt, 4000 in student loan already graduated, and no savings what so ever. My knowledge about 401 k is zero. Is contribution to 401k tax deductible?EDIT: Seems like I should contribute since its free money. Thanks for answering my question!  <response>: What you contribute to a traditional 401k wont show up as part of your wages on W-2, so it wont be included in your taxable income. Its taken out pre-tax and you pay taxes only much later, when you withdraw from it during retirement, when your tax rate may be lower than now. 