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How 401(k) plans have fueled inequality in America As the stock market has increased in recent years, wages have stagnated. So while workers who are able to invest in a 401(k) have enjoyed the gains, lower-income workers have missed out, according to this article in Businessweek. As workers haven't experienced a raise in salary, only people with higher pay are able to contribute more to their 401(k) plans and end up gaining more from the stock market because of having bigger stock investments. While the 401(k) plans enable more people to own stock, those lower-income workers are likely to tap their 401(k) savings when they lose their jobs or file for divorce. Such a move could mean penalties and long-term consequences to their nest egg and retirement prospects.–Businessweek

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