15 plain-English guides to 401(k) plans — how they work, how the maths works, and how to avoid the mistakes that quietly cost savers money.
For 2026, you can contribute up to $24,500 of your own pay to a 401k. If you are 50 or older you can add an $8,000 catch-up, lifting your personal lim…
Read guideThe choice between a Roth and a traditional 401k comes down to one question: will your tax rate be higher now or in retirement? A Roth pays tax today …
Read guideAn employer 401k match is money your company adds when you contribute — often 50 cents or a full dollar per dollar, up to a percentage of your pay. To…
Read guideTaking money from a traditional 401k before age 59.5 usually means paying ordinary income tax plus a 10% early-withdrawal penalty. On a $20,000 withdr…
Read guideA required minimum distribution is the minimum amount you must withdraw each year from a traditional 401k, starting at age 73 (75 if born in 1960 or l…
Read guideA common guideline suggests having about 1x your salary saved by 30, 3x by 40, and 6x by 50, on the way to roughly 10x by retirement. On a $60,000 sal…
Read guideA 401k and a Roth IRA serve different roles, and many savers use both rather than choosing. The 401k offers an employer match and a high $24,500 contr…
Read guideIn a divorce, a 401k is frequently divided as marital property using a Qualified Domestic Relations Order (QDRO). This court order lets a plan pay par…
Read guideTo max out your 401k in 2026, you contribute $24,500 over the year, or $32,500 with the age-50 catch-up and $35,750 at ages 60 to 63. The practical wo…
Read guideVesting is how you earn ownership of your employer's 401k contributions over time. Your own contributions are always 100% yours from day one, but matc…
Read guideCompound growth is the engine of a 401k: your investment returns earn returns of their own, year after year, and inside a tax-advantaged account nothi…
Read guideA Solo (Individual) 401k is a retirement plan for self-employed people with no employees. You contribute as both employee and employer, which lets you…
Read guideA 401k rollover moves money from an old employer's plan into an IRA or a new 401k, keeping it tax-deferred. Done as a direct rollover — where the mone…
Read guideHow long your 401k lasts depends on the gap between what you withdraw and what your balance earns, adjusted for inflation. The 4% rule suggests a star…
Read guideA traditional 401k contribution lowers your take-home pay by less than the amount you save, because it comes out before income tax. If you contribute …
Read guideEvery article here links back to a calculator that does the arithmetic for your actual salary, contribution and time horizon.