401(k)
A retirement savings plan offered through an employer. Money comes straight from your paycheck, often with an employer match.
You choose a percentage of each paycheck to contribute. Traditional contributions lower your taxable income now. Roth contributions, if your plan offers them, are taxed now but can be withdrawn tax-free in retirement.
For 2026, you can contribute up to $24,500, plus $8,000 more at age 50 and over, or $11,250 at ages 60 to 63 if your plan allows. Withdrawals before age 59½ usually mean taxes plus a 10% penalty, with some exceptions.