The great thing about pretax retirement accounts, of course, is that by making use of them, you can put your money to work without first losing 40 cents or more of your hard-earned dollar to taxes. Here’s how it works. Let’s say you take $100 out of your paycheck every month and put it into a pretax retirement account. Well, that’s $100 a month that won’t be subject to income taxes—not federal taxes, not state taxes!
