Okta deducts your contributions from your paycheck on a pretax basis. That means your taxable income is lower, so you pay lower federal and state taxes now.
Your 401(k) savings and investment earnings accumulate on a tax-deferred basis.
You’ll pay tax when you withdraw money from your account at retirement (or, in other cases, for example, if you leave Okta and withdraw your money from your account).
A rollover to another employer’s plan or an IRA is generally not taxable.
This option may be best if you want to reduce your current taxable income or if you think you’ll be in a lower tax bracket when you get to retirement.