401(k), 403(b) and IRAs

What to know

1. Ask HR whether there's a plan, when you can join and whether there's a match. Federal law lets plans require you to be 21 with a year of service first, but many let you in sooner, and part-timers who work 1,000 hours a year may qualify.
2. Get the full match. Your employer may match a percentage of what you put in. Contributing less than the match leaves part of your pay on the table. See Choosing your benefits for a worked example.
3. Choose pre-tax or Roth, if your plan offers both. Pre-tax 401(k) contributions go in before tax, and withdrawals are taxed later. Roth 401(k) and Roth IRA contributions go in after tax, and qualified withdrawals, after 59½ and at least five years in the account, are tax-free. You can split between the two, as long as the total stays under the limit.
4. Check the vesting schedule. Your own contributions are always 100% yours. The employer's match may take up to 3 years (cliff) or 6 years (graduated) to be fully yours.
5. Pick your investments. If you were enrolled automatically and don't choose, your money goes into a predetermined investment. Look up what it is and what it charges. See Index funds and fees.
6. No plan at work, or want more? Open an IRA. For 2026 you can put in up to $7,500 total across traditional and Roth IRAs, but not more than you earned that year. Roth IRAs phase out for single filers with income between $153,000 and $168,000.
7. Check the Saver's Credit at tax time. If you're 18 or older, not claimed as a dependent and not a full-time student, you can get a credit of 50%, 20% or 10% of up to $2,000 you put into an IRA or workplace plan, depending on income. That's up to $1,000 back. For 2026, the income limit is $40,250 for single filers.