So You've Got a 401(k) and Don't Know What to Do With It
If your new job offers a 401(k) plan, and you've never had one before, you may have a few questions. You may know you should invest in a 401(k) thanks to all the potential benefits, but knowing you should do something and knowing how to do it are two different things.
A 401(k) plan offers employees a special retirement savings account that comes with tax advantages that a regular brokerage account doesn't offer. The money contributed to your 401(k) account will come straight from your paycheck, and your employer will deposit it on your behalf. Contributions in 2021 are limited to $19,500 or 100% of your salary, whichever is less.
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Source Fool.com