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If you get an employer match, it is part of your pay. Defaulting in at least to the match is usually the first box to check before debating fund choices.
Account types
- Traditional: pre-tax in, taxed on withdrawal.
- Roth: after-tax in, qualified withdrawals tax-free.
- Taxable: flexible, taxed on dividends and gains along the way.
Vesting and limits
Match dollars may vest over years—read the summary plan description. Contribution limits change with tax law; verify each year.
Translate salary deferral to a balance
Mistakes
- Leaving match on the table while spending discretionary cash.
- Cash-heavy 401(k) for decades out of fear, then chasing return late.
Use the calculator
FAQ
- Roth or traditional?
Depends on current vs expected tax bracket and flexibility needs—many people mix both.
- Next step
Withdrawal strategies for spending order in retirement.