401(k) Retirement Planning

A 401(k) can combine employee contributions, employer contributions, tax advantages, and long-term investment growth. The amount available at retirement depends on contribution history, investment performance, fees, plan rules, withdrawals, and taxes.

Key points

• Capture the employer match when it fits your situation
• Know the annual IRS contribution limits
• Review vesting rules for employer money
• Choose an asset allocation you understand
• Track fees and investment options
• Coordinate 401(k) savings with IRA and taxable accounts

How this fits into retirement planning

For 2026, the IRS announced an employee elective-deferral limit of $24,500 for most 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan, before applicable catch-up provisions.

Official sources

Use current guidance from the Social Security Administration at ssa.gov and the Internal Revenue Service at irs.gov for rules that apply to your situation.