Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
What is a 401(k) plan?
A 401(k) is an employer-sponsored retirement savings plan. You contribute a portion of your pre-tax salary, and the money grows tax-deferred until retirement. Many employers offer matching contributions.
How much should I contribute?
Contribute at least enough to get your full employer match, as this is free money. The 2026 contribution limit is $23,500, with a $7,500 catch-up for those 50 and older. Increase your contributions as your income grows.
How do I invest my 401(k)?
Choose a diversified mix of investments based on your age and risk tolerance. Target-date funds automatically adjust your allocation as you approach retirement. Review your investments periodically and rebalance as needed.