What Is a 401(k) and How Does It Work? (Beginner Guide)
Key Takeaways A 401(k) is a tax-advantaged retirement account offered by US employers. Contributions reduce your taxable income today — you pay tax when you withdraw in retirement. In 2026, you can contribute up to $23,500 per year ($31,000 if you’re 50+). Always contribute at least enough to get your employer’s full match — it’s … Read more