401(k)
An employer-sponsored retirement account with pre-tax (traditional) or after-tax (Roth) contributions.
Why it matters
2025 contribution limit: $23,500 (plus $7,500 catch-up for age 50+, and a new $11,250 catch-up for ages 60–63). Employer matches don't count against the limit. Money grows tax-deferred (traditional) or tax-free (Roth). Withdrawals before 59½ typically incur a 10% penalty plus taxes.
See also
Educational only — not financial, tax, or legal advice.