401(k)
An employer-sponsored retirement plan that lets you contribute pre-tax (or Roth) dollars, often with a match.
What does 401 mean?
Contributions to a traditional 401(k) lower your taxable income now and grow tax-deferred until withdrawal. Many employers match part of your contribution — free money you should always capture in full.
Put it to use
401(k) Calculator A 401(k) can be one of your best tools for creating a secure retirement. Use this calculator to see why this is a retirement savings plan you cannot afford to pass up. 401(k) Contribution Effects on Your Paycheck Calculator Use this calculator to see how increasing your contributions to a 401(k) plan can affect your paycheck as well as your retirement.
401 — frequently asked
How much should I contribute to my 401(k)?
At minimum contribute enough to capture your full employer match — that is an instant, guaranteed return. A common target is 10%–15% of income including the match; increase it by 1% a year until you reach the annual IRS limit if you can.
What happens to my 401(k) when I leave a job?
The money stays yours. You can leave it in the old plan, roll it into your new employer’s 401(k), or roll it into an IRA. A direct rollover avoids taxes and penalties; cashing out before 59½ usually triggers income tax plus a 10% penalty.