What is a 401(k) and how much should I contribute from my paycheck?

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Oct 12, 2025
How-To & Implementation

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A 401(k) is a retirement savings and investment plan offered by employers in the United States. It allows eligible employees to save and invest for retirement on a tax-deferred basis. Contributions are deducted from an employee's paycheck before taxes, which can lower their current taxable income. A key feature of a 401(k) is the potential for an employer match, where the company contributes to the employee's account, often up to a certain percentage of their salary.

The provided search results do not specify how much you should contribute from your paycheck.

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