Your best friend meets you for lunch and says, "Hey! I finally stopped by Chase Bank and opened up my 401(k) account. I can't take the money out before 59 or else I'll get penalized. But it's all good because it gets matched up to 5% of what I contribute. And I need to let that money sit and grow anyway, so I'm cool with not touching it. They basically told me that I need this account because it's separate from any money I might get from the government through social security."

Why do you look at your best friend suspiciously?

401(k)'s are only matched up to 3%.

The 401(k) is an extension of social security money that the government gives; they are not separate.

The age you can start withdrawing money without penalty is not 59 .

You do not get penalized by withdrawing money from a 401(k).

The real reason is not listed.