The 2026 401(k) contribution limit is $23,500 (under 50) or $31,000 (50+) with catch-up contributions. At minimum, contribute enough to get your full employer match — anything less is leaving free money on the table. Ideal targets: 15-20% of gross income including employer match. If you can't hit 15%, start where you can and increase by 1% each year.

Employer match is free money your company adds to your 401(k) based on your contributions. Common formulas: 100% match on first 3% (you put in 3%, they put in 3%), or 50% match on first 6% (you put in 6%, they put in 3%). Example: on $75,000 salary with 100% match on 3%, your employer adds $2,250/year. Over 30 years at 8% return, that match alone grows to $255,000+.

Traditional: contributions reduce taxable income now, taxed on withdrawal in retirement. Roth: contributions are after-tax now, withdrawals are completely tax-free. Choose Roth if: you expect higher taxes in retirement, you're early in your career (lower tax bracket now), or you want tax-free income flexibility. Choose Traditional if: you're in a high bracket now and expect lower taxes in retirement.

You have 4 options: 1) Leave it with your old employer (if balance exceeds $7,000). 2) Roll it into your new employer's 401(k). 3) Roll it into an IRA (most flexibility and often lower fees). 4) Cash out (avoid this — you'll pay income tax + 10% penalty if under 59½, potentially losing 30-40% to taxes). Rollovers must be completed within 60 days to avoid penalties.

Yes, in specific situations: Rule of 55 (leave job at 55+, access that employer's plan), hardship withdrawals (medical expenses, foreclosure prevention), 401(k) loans (borrow up to 50% or $50,000, repay with interest to yourself), QDRO (divorce), disability, or death. The SECURE 2.0 Act also allows penalty-free emergency withdrawals up to $1,000/year starting 2024.