Short essays: Your colleague asks you about 401(k) plans.  He wants to know what tax advantages there are to investing in a 401(k) over just investing on his own and not through a qualified retirement plan like a 401(k).

Short essays:

Your colleague asks you about 401(k) plans.  He wants to know what tax advantages there are to investing in a 401(k) over just investing on his own and not through a qualified retirement plan like a 401(k).  How do you respond to him?  Tell me at least 2 advantages.