How 401(k) Contributions Work

When you enroll in your employer's 401(k) plan, you elect a contribution percentage or dollar amount from each paycheck. That money is transferred directly to your 401(k) investment account before you receive your paycheck — which means you never see it and never spend it.

What Happens to Your 401(k) When You Leave a Job?

You have four options when leaving an employer:

How Does a 401(k) Work? Contributions, Employer Match, and Vesting Explained

Learn how a 401(k) works, including contribution limits for 2026, employer matching, vesting schedules, and whether to choose traditional or Roth 401(k) based on your tax bracket.