DayCents

401(k)

A 401(k) is an employer-sponsored retirement account you fund straight from your paycheck, often with a matching contribution from your employer. Traditional 401(k) money goes in pre-tax and lowers this year's taxable income; a Roth 401(k) is funded after-tax and comes out tax-free.

The employer match is the closest thing to free money in personal finance — always contribute at least enough to capture it in full. The 2026 employee contribution limit is $24,500, with catch-up contributions allowed at 50 and older.