Glossary term

401(k)

A 401(k) is an employer-sponsored retirement account that often includes tax benefits, payroll contributions, and sometimes an employer match.

Reviewed April 4, 2026

By Marcus Lee • Retirement & Planning Editor

A 401(k) is usually one of the highest-leverage places to begin retirement saving because payroll deduction lowers friction and an employer match is immediate compensation.

The account choice inside the plan still matters. Contribution rate, investment menu, and tax treatment shape the outcome more than following market headlines day to day.

Related

Keep moving through the same topic without dead ends

Guides