401(k)
An employer-sponsored retirement account funded with pre-tax payroll deductions.
2026 contribution limit is $23,500 ($31,000 if 50+). Many employers match a percentage — always contribute at least enough to capture the full match (it's free money). Funds grow tax-deferred and are taxed as ordinary income when withdrawn in retirement.
Related
- Roth IRA — An after-tax retirement account where withdrawals in retirement are tax-free.