🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 187 (from laksa181)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa187.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.finra.org/investors/insights/beginners-guide-401ks\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.finra.org/investors/insights/beginners-guide-401ks\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.finra.org\/investors\/insights\/beginners-guide-401ks","crawl_time":1776975361,"first_indexed_time":1690908090,"http_code":200,"src_unparsed":"org,finra!www,\/investors\/insights\/beginners-guide-401ks s443","src_root_hash":"14312963409122772987","history_drop_reason":null,"meta_title":"The Beginner’s Guide to 401(k)s | FINRA.org","meta_descriptions":["If you’re just starting your career, planning for retirement might be the last thing on your mind. However, the choices you make now can significantly affect your finances in the future. You don’t want to overlook is the 401(k), which can be a powerful resource for building a secure retirement."],"attrs_boilerpipe_text":"If you’re just starting your career, planning for retirement might be the last thing on your mind. You might be facing numerous financial challenges today—student loans, competitive job markets, rising housing costs, piles of bills—that seem more demanding of your attention than something so far down the road. However, the choices you make now are important and can significantly affect your finances in the future. When scrutinizing the benefits offered by your employer, there's one that you don't want to overlook: the 401(k).\nA 401(k) or similar employer-sponsored retirement plan can be a powerful resource for building a secure retirement, and many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute at or beyond that threshold, you’ll be taking full advantage of the benefit. But if you contribute less than your employer is willing to match, you might be passing up free money.\nThe Value of a Corporate Match\nOver time, an employer match can add a substantial amount to your retirement nest egg.\nLet's assume you’re 22 years old, make $40,000 annually and contribute 3 percent of your salary ($1,200) to your 401(k). And, for the sake of this example, let's also assume you’ll continue to make the same salary and same contribution each year until you’re 65. After 43 years, you’ll have contributed $51,600 to your 401(k).\nNow let's assume you get a dollar-for-dollar match from your employer for your 401(k) contributions of up to 3 percent of your salary. This match, commonly offered by employers, literally doubles your total savings in the example above from $51,600 to $103,200. That's $51,600 in free money! And any other potential growth in the value of your investments will increase your 401(k) balance further.\nNot all employers provide matches to employee contributions, so ask your company’s human resources or benefits department if you’re uncertain. Also find out the maximum percent of salary that your company will match.\nIf you’re struggling to set aside the maximum match amount due to other financial obligations, you might still be able to take advantage of an employer match: Some employers will now make matching contributions to certain types of employee retirement accounts based on the employee’s qualified student loan payments, broadly defined as any debt an employee takes on to pay higher education expenses. If you’re focused on paying down student debt, ask your employer if they offer this option.\nThe Earlier, The Better\nEarly on in your career, handling your finances might seem more like juggling, and you might not be able to save large amounts of money as a young investor. But one very important asset that you do have on your side is time. If used to its best advantage, time can be a powerful wealth-building asset. The earlier you start saving for retirement, the more it will pay off.\nContinuing with the example above, let’s say that you wait a few years before starting to make 401(k) contributions. At age 30, you begin contributing 3 percent of your $40,000 annual salary to your 401(k). Upon retirement at 65, having made the same salary and same contribution each year, you’ll have saved $82,000 with the combination of your contribution and your employer’s match. That’s nearly 20 percent less than you’d have saved if you’d started at 22 years old.\nThe sooner you start saving, the more time your money has to grow—and thanks to the power of\ncompound interest\n(essentially the interest you earn upon interest), that growth can be significant.\nThose numbers can be even higher the more you contribute to your retirement account. Check the\nIRS contribution limits\nfor 401(k) plans and use FINRA’s\nSave the Max Calculator\nto see if you’re on track to save the maximum in your 401(k) this year.\nTax Advantages\nIn addition to helping you prepare for the future, contributing to a 401(k) can provide significant tax advantages today.\nContributions to a traditional 401(k) are made with \npre-tax\ndollars—meaning the money goes into your retirement account before it gets taxed. With pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you’ll owe less in income taxes for the year. You won’t owe any taxes on these funds until you withdraw money from your account, typically after you retire.\nUsing the example above, the $1,200 you contribute to a traditional 401(k) in a given year will reduce the gross income you must report to the IRS for that year from $40,000 to $38,800.\nWith a Roth 401(k), you make contributions with after-tax dollars. However, employers may make matching contributions on a pre-tax basis. Check with your employer about the options available for your plan, and be sure to talk with a tax specialist and\/or investment professional to discuss your personal situation.\nWhat to Take Away\nEven contributing at the match threshold might not be enough to fully fund a secure retirement, and you might need to save in other ways to generate enough replacement income during retirement to maintain your standard of living. But that should never discourage you from saving what you can now. Everyone’s circumstances are different, and any contribution is better than none.\nBy starting early and increasing your contributions over time, particularly when you experience an increase in salary, you can maximize your savings and have more money in retirement.\nLearn more\nabout 401(k)s and other employer-sponsored plans.\nUpdated: 02\/27\/2025","attrs_markdown":"[Skip to main content](https:\/\/www.finra.org\/investors\/insights\/beginners-guide-401ks#main-content)\n\n## FINRA Utility Menu\n- [About Us](https:\/\/www.finra.org\/about)\n- [Careers](https:\/\/www.finra.org\/careers)\n- [BrokerCheck](https:\/\/brokercheck.finra.org\/)\n- [Data](https:\/\/www.finra.org\/finra-data)\n- [Media Center](https:\/\/www.finra.org\/media-center)\n- [For Firms](https:\/\/www.finra.org\/member-firm-hub)\n\nFor the Public\n\n[FINRA DATA](https:\/\/ews.finra.org\/auth\/logon?realm=ews&goto=https%3A\/\/gateway.finra.org\/app\/data%3FrcpRedirNum%3D1)\n\nFINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.\n\n[Login to FINRA DATA](https:\/\/ews.finra.org\/auth\/logon?realm=ews&goto=https%3A\/\/gateway.finra.org\/app\/data%3FrcpRedirNum%3D1)\n\nFor Industry Professionals\n\n[FINPRO GATEWAY](https:\/\/finpro.finra.org\/)\n\nRegistered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.\n\n[Login to FINPRO GATEWAY](https:\/\/finpro.finra.org\/)\n\nFor Member Firms\n\n[FINRA GATEWAY](https:\/\/gateway.finra.org\/)\n\nFirm compliance professionals can access filings and requests, run reports and submit support tickets.\n\n[Login to FINRA GATEWAY](https:\/\/gateway.finra.org\/)\n\nFor Case Participants\n\n[DR PORTAL](https:\/\/drportal.finra.org\/)\n\nArbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.\n\n[Login to DR PORTAL](https:\/\/drportal.finra.org\/)\n\n[Need Help?](https:\/\/tools.finra.org\/cc_support\/) \\| [Check System Status](https:\/\/www.finra.org\/filing-reporting\/systems-status)\n\n[Log In to other FINRA systems](https:\/\/www.finra.org\/filing-reporting\/entitlement\/systems)\n\n[![FINRA: 85 years of protecting investors - Home](https:\/\/www.finra.org\/sites\/default\/files\/FINRA_Logo_Desktop.png)](https:\/\/www.finra.org\/ \"Home\")\n\n- [Rules & Guidance](https:\/\/www.finra.org\/rules-guidance)\n  - 1. 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[View a Regulatory Element Learning Plan](https:\/\/www.finra.org\/registration-exams-ce\/continuing-education\/regulatory-element-topics)\n    3. [Registration Section 3](https:\/\/www.finra.org\/registration-exams-ce)\n       \n       1. ## [Registration Systems](https:\/\/www.finra.org\/registration-exams-ce\/classic-crd)\n          1. [Classic CRD](https:\/\/www.finra.org\/registration-exams-ce\/classic-crd)\n          2. [Financial Professional Gateway (FinPro)](https:\/\/www.finra.org\/registration-exams-ce\/finpro)\n          3. [Financial Industry Networking Directory (FIND)](https:\/\/www.finra.org\/registration-exams-ce\/financial-industry-networking-directory)\n- [Events & Training](https:\/\/www.finra.org\/events-training)\n  - 1. [Events & Training Section 1](https:\/\/www.finra.org\/events-training)\n       \n       1. [Upcoming Events](https:\/\/www.finra.org\/events-training\/upcoming-events)\n       2. 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[Spending](https:\/\/www.finra.org\/investors\/personal-finance\/control-spending-calculate-cash-flow)\n          4. [Debt](https:\/\/www.finra.org\/investors\/personal-finance\/manage-your-debt)\n          5. [Credit Scores](https:\/\/www.finra.org\/investors\/personal-finance\/how-your-credit-score-impacts-your-financial-future)\n          6. [Emergency Funds](https:\/\/www.finra.org\/investors\/personal-finance\/start-emergency-fund)\n    2. [For Investors Section 2](https:\/\/www.finra.org\/investors)\n       \n       1. ## [Investing](https:\/\/www.finra.org\/investors\/investing)\n          1. [Investing Basics](https:\/\/www.finra.org\/investors\/investing\/investing-basics)\n          2. [Investment Accounts](https:\/\/www.finra.org\/investors\/investing\/investment-accounts)\n          3. [Investment Products](https:\/\/www.finra.org\/investors\/investing\/investment-products)\n          4. [Investment Strategies](https:\/\/www.finra.org\/investors\/investing\/investment-strategies)\n          5. [Working With an Investment Professional](https:\/\/www.finra.org\/investors\/investing\/working-with-investment-professional)\n       2. ## [Protect Your Money](https:\/\/www.finra.org\/investors\/protect-your-money)\n          1. [Check Registration](https:\/\/www.finra.org\/investors\/protect-your-money\/check-registration)\n          2. [Avoid Fraud](https:\/\/www.finra.org\/investors\/protect-your-money\/avoid-fraud)\n          3. [Watch for Red Flags](https:\/\/www.finra.org\/investors\/protect-your-money\/watch-red-flags)\n          4. [Safeguard Your Identity](https:\/\/www.finra.org\/investors\/protect-your-money\/safeguard-your-identity)\n    3. [For Investors Section 3](https:\/\/www.finra.org\/investors)\n       \n       1. 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[Avenues for Recovery of Losses](https:\/\/www.finra.org\/investors\/need-help\/legitimate-avenues-recovery-investment-losses)\n***\n## FINRA Utility Menu\n- [About Us](https:\/\/www.finra.org\/about)\n- [Careers](https:\/\/www.finra.org\/careers)\n- [BrokerCheck](https:\/\/brokercheck.finra.org\/)\n- [Data](https:\/\/www.finra.org\/finra-data)\n- [Media Center](https:\/\/www.finra.org\/media-center)\n- [For Firms](https:\/\/www.finra.org\/member-firm-hub)\n\nFor the Public\n\n[FINRA DATA](https:\/\/ews.finra.org\/auth\/logon?realm=ews&goto=https%3A\/\/gateway.finra.org\/app\/data%3FrcpRedirNum%3D1)\n\nFINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.\n\n[Login to FINRA DATA](https:\/\/ews.finra.org\/auth\/logon?realm=ews&goto=https%3A\/\/gateway.finra.org\/app\/data%3FrcpRedirNum%3D1)\n\nFor Industry Professionals\n\n[FINPRO GATEWAY](https:\/\/finpro.finra.org\/)\n\nRegistered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.\n\n[Login to FINPRO GATEWAY](https:\/\/finpro.finra.org\/)\n\nFor Member Firms\n\n[FINRA GATEWAY](https:\/\/gateway.finra.org\/)\n\nFirm compliance professionals can access filings and requests, run reports and submit support tickets.\n\n[Login to FINRA GATEWAY](https:\/\/gateway.finra.org\/)\n\nFor Case Participants\n\n[DR PORTAL](https:\/\/drportal.finra.org\/)\n\nArbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.\n\n[Login to DR PORTAL](https:\/\/drportal.finra.org\/)\n\n[Need Help?](https:\/\/tools.finra.org\/cc_support\/) \\| [Check System Status](https:\/\/www.finra.org\/filing-reporting\/systems-status)\n\n[Log In to other FINRA systems](https:\/\/www.finra.org\/filing-reporting\/entitlement\/systems)\n\n1. [For Investors](https:\/\/www.finra.org\/investors)\n2. [Investor Insights](https:\/\/www.finra.org\/investors\/insights)\n\nEXPLORE THIS SECTION\n\n## FINRA Main Navigation\n- [Investor Insights](https:\/\/www.finra.org\/investors\/insights)\n- [Tools & Calculators](https:\/\/www.finra.org\/investors\/tools-and-calculators)\n- [Personal Finance](https:\/\/www.finra.org\/investors\/personal-finance)\n- [Investing](https:\/\/www.finra.org\/investors\/investing)\n  - [Investing Basics](https:\/\/www.finra.org\/investors\/investing\/investing-basics)\n  - [Investment Accounts](https:\/\/www.finra.org\/investors\/investing\/investment-accounts)\n  - [Investment Products](https:\/\/www.finra.org\/investors\/investing\/investment-products)\n  - [Investment Strategies](https:\/\/www.finra.org\/investors\/investing\/investing-basics\/investment-strategies)\n  - [Working With an Investment Professional](https:\/\/www.finra.org\/investors\/investing\/working-with-investment-professional)\n- [Protect Your Money](https:\/\/www.finra.org\/investors\/protect-your-money)\n  - [Check Registration](https:\/\/www.finra.org\/investors\/protect-your-money\/check-registration)\n  - [Avoid Fraud](https:\/\/www.finra.org\/investors\/protect-your-money\/avoid-fraud)\n  - [Watch for Red Flags](https:\/\/www.finra.org\/investors\/protect-your-money\/watch-red-flags)\n  - [Safeguard Your Identity](https:\/\/www.finra.org\/investors\/protect-your-money\/safeguard-your-identity)\n- [For the Military](https:\/\/www.finra.org\/investors\/military)\n- [Need Help?](https:\/\/www.finra.org\/investors\/need-help)\n\nInvestment Accounts\n\n# The Beginner’s Guide to 401(k)s\n\nAugust 01, 2023\n\n![The College Grad's Guide to 401(k)s](https:\/\/www.finra.org\/sites\/default\/files\/wp-content\/uploads\/2015\/05\/shutterstock_161760842-1440x670.jpg)\n\nIf you’re just starting your career, planning for retirement might be the last thing on your mind. You might be facing numerous financial challenges today—student loans, competitive job markets, rising housing costs, piles of bills—that seem more demanding of your attention than something so far down the road. However, the choices you make now are important and can significantly affect your finances in the future. When scrutinizing the benefits offered by your employer, there's one that you don't want to overlook: the 401(k).\n\nA 401(k) or similar employer-sponsored retirement plan can be a powerful resource for building a secure retirement, and many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute at or beyond that threshold, you’ll be taking full advantage of the benefit. But if you contribute less than your employer is willing to match, you might be passing up free money.\n\n## The Value of a Corporate Match\nOver time, an employer match can add a substantial amount to your retirement nest egg.\n\nLet's assume you’re 22 years old, make \\$40,000 annually and contribute 3 percent of your salary (\\$1,200) to your 401(k). And, for the sake of this example, let's also assume you’ll continue to make the same salary and same contribution each year until you’re 65. After 43 years, you’ll have contributed \\$51,600 to your 401(k).\n\nNow let's assume you get a dollar-for-dollar match from your employer for your 401(k) contributions of up to 3 percent of your salary. This match, commonly offered by employers, literally doubles your total savings in the example above from \\$51,600 to \\$103,200. That's \\$51,600 in free money! And any other potential growth in the value of your investments will increase your 401(k) balance further.\n\nNot all employers provide matches to employee contributions, so ask your company’s human resources or benefits department if you’re uncertain. Also find out the maximum percent of salary that your company will match.\n\nIf you’re struggling to set aside the maximum match amount due to other financial obligations, you might still be able to take advantage of an employer match: Some employers will now make matching contributions to certain types of employee retirement accounts based on the employee’s qualified student loan payments, broadly defined as any debt an employee takes on to pay higher education expenses. If you’re focused on paying down student debt, ask your employer if they offer this option.\n\n## The Earlier, The Better\nEarly on in your career, handling your finances might seem more like juggling, and you might not be able to save large amounts of money as a young investor. But one very important asset that you do have on your side is time. If used to its best advantage, time can be a powerful wealth-building asset. The earlier you start saving for retirement, the more it will pay off.\n\nContinuing with the example above, let’s say that you wait a few years before starting to make 401(k) contributions. At age 30, you begin contributing 3 percent of your \\$40,000 annual salary to your 401(k). Upon retirement at 65, having made the same salary and same contribution each year, you’ll have saved \\$82,000 with the combination of your contribution and your employer’s match. That’s nearly 20 percent less than you’d have saved if you’d started at 22 years old.\n\nThe sooner you start saving, the more time your money has to grow—and thanks to the power of [compound interest](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/compound-interest-calculator) (essentially the interest you earn upon interest), that growth can be significant.\n\nThose numbers can be even higher the more you contribute to your retirement account. Check the [IRS contribution limits](https:\/\/www.finra.org\/investors\/investing\/investment-accounts\/retirement-accounts\/annual-contribution-limits) for 401(k) plans and use FINRA’s [Save the Max Calculator](https:\/\/tools.finra.org\/max401k\/) to see if you’re on track to save the maximum in your 401(k) this year.\n\n## Tax Advantages\nIn addition to helping you prepare for the future, contributing to a 401(k) can provide significant tax advantages today.\n\nContributions to a traditional 401(k) are made with [pre-tax](https:\/\/www.finra.org\/investors\/insights\/tax-advantaged) dollars—meaning the money goes into your retirement account before it gets taxed. With pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you’ll owe less in income taxes for the year. You won’t owe any taxes on these funds until you withdraw money from your account, typically after you retire.\n\nUsing the example above, the \\$1,200 you contribute to a traditional 401(k) in a given year will reduce the gross income you must report to the IRS for that year from \\$40,000 to \\$38,800.\n\nWith a Roth 401(k), you make contributions with after-tax dollars. However, employers may make matching contributions on a pre-tax basis. Check with your employer about the options available for your plan, and be sure to talk with a tax specialist and\/or investment professional to discuss your personal situation.\n\n## What to Take Away\nEven contributing at the match threshold might not be enough to fully fund a secure retirement, and you might need to save in other ways to generate enough replacement income during retirement to maintain your standard of living. But that should never discourage you from saving what you can now. Everyone’s circumstances are different, and any contribution is better than none.\n\nBy starting early and increasing your contributions over time, particularly when you experience an increase in salary, you can maximize your savings and have more money in retirement.\n\n[Learn more](https:\/\/www.finra.org\/investors\/investing\/investment-accounts\/retirement-accounts#types) about 401(k)s and other employer-sponsored plans.\n\n*Updated: 02\/27\/2025*\n\n## TOOLS & CALCULATORS\n[Smart Investing Courses](https:\/\/www.finra.org\/investors\/investing\/investing-basics\/smart-investing-courses)\n***\n[Market Data Center](https:\/\/finra-markets.morningstar.com\/MarketData\/Default.jsp)\n***\n[Fixed Income Data](https:\/\/www.finra.org\/finra-data\/fixed-income)\n***\n[BrokerCheck](https:\/\/brokercheck.finra.org\/)\n***\n[Fund Analyzer](https:\/\/www.finra.org\/fundanalyzer)\n\n[View All tools and calculators](https:\/\/www.finra.org\/investors\/tools-and-calculators)\n\n### Recent Investor Insights\n[![](https:\/\/www.finra.org\/sites\/default\/files\/styles\/crop_thumbnail\/public\/2026-04\/iStock-1387071403-880x415.jpg?itok=XXnT7YXt) Investing Understanding the New Intraday Margin Requirements](https:\/\/www.finra.org\/investors\/insights\/intraday-margin-requirements)\n\n[![](https:\/\/www.finra.org\/sites\/default\/files\/styles\/crop_thumbnail\/public\/2021-09\/closed-padlock-on-keyboard-id507881770.jpg?itok=saudWxr5) Avoid Fraud Customer Account Takeovers: What They Are and How to Protect Yourself](https:\/\/www.finra.org\/investors\/insights\/customer-account-takeovers)\n\n[![](https:\/\/www.finra.org\/sites\/default\/files\/styles\/crop_thumbnail\/public\/2022-03\/precious-metals-istock-1271246933-640x302.jpg?itok=QR2sQxNh) Futures and Commodities 4 Tips to Know Before Buying Physical Precious Metals](https:\/\/www.finra.org\/investors\/insights\/physical-precious-metals)\n\n[View All](https:\/\/www.finra.org\/investors\/insights)\n\n[![Home](https:\/\/www.finra.org\/themes\/custom\/finra_bootstrap_sass\/images\/FINRA_Logo.svg)](https:\/\/www.finra.org\/ \"Home\")\n\n## FINRA Utility Menu\n- [About Us](https:\/\/www.finra.org\/about)\n- [Careers](https:\/\/www.finra.org\/careers)\n- [BrokerCheck](https:\/\/brokercheck.finra.org\/)\n- [Data](https:\/\/www.finra.org\/finra-data)\n- [Media Center](https:\/\/www.finra.org\/media-center)\n- [For Firms](https:\/\/www.finra.org\/member-firm-hub)\n\n## FINRA Main Navigation\n- [Rules & Guidance](https:\/\/www.finra.org\/rules-guidance)\n- [Registration, Exams & CE](https:\/\/www.finra.org\/registration-exams-ce)\n- [Events & Training](https:\/\/www.finra.org\/events-training)\n- [Filing & Reporting](https:\/\/www.finra.org\/filing-reporting)\n- [Compliance Tools](https:\/\/www.finra.org\/compliance-tools)\n- [For Investors](https:\/\/www.finra.org\/investors)\n\n[General Inquiries](https:\/\/www.finra.org\/contact-finra\/)\n\n301-590-6500\n\n[Securities Helpline for Seniors®](https:\/\/www.finra.org\/investors\/have-a-problem\/helpline-seniors)\n\n844-574-3577 (Mon-Fri 9am-5pm ET)\n\n[File a Regulatory Tip](https:\/\/www.finra.org\/contact-finra\/file-tip)\n\nTo report on abuse or fraud in the industry\n\n[Arbitration & Mediation](https:\/\/www.finra.org\/arbitration-mediation)\n\nFINRA operates the largest securities dispute resolution forum in the United States\n\n[File an Investor Complaint](https:\/\/www.finra.org\/investors\/need-help\/file-a-complaint)\n\nFile a complaint about fraud or unfair practices.\n\n[Small Firm Help Line](https:\/\/www.finra.org\/compliance-tools\/finra-small-firm-helpline)\n\n833-26-FINRA (Mon-Fri 9am-6pm ET)\n\n[Office of the Ombuds](https:\/\/www.finra.org\/about\/office-ombuds)\n\nReport a concern about FINRA at 888-700-0028\n\n## Footer Legal Links\n- [Site Map](https:\/\/www.finra.org\/site-map)\n- [Privacy Policy](https:\/\/www.finra.org\/privacy-policy)\n- [Terms of Use](https:\/\/www.finra.org\/terms-of-use)\n- [Translate](https:\/\/www.finra.org\/translate)\n- [Contact Us](https:\/\/www.finra.org\/contact-finra)\n\n© 2026 FINRA. All Rights Reserved.\n\nFINRA is a Registered Trademark of the Financial Industry Regulatory Authority, Inc.\n\n![](https:\/\/www.facebook.com\/tr?id=1621322547905865&ev=PageView&noscript=1)","attrs_readable_markdown":"If you’re just starting your career, planning for retirement might be the last thing on your mind. You might be facing numerous financial challenges today—student loans, competitive job markets, rising housing costs, piles of bills—that seem more demanding of your attention than something so far down the road. However, the choices you make now are important and can significantly affect your finances in the future. When scrutinizing the benefits offered by your employer, there's one that you don't want to overlook: the 401(k).\n\nA 401(k) or similar employer-sponsored retirement plan can be a powerful resource for building a secure retirement, and many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute at or beyond that threshold, you’ll be taking full advantage of the benefit. But if you contribute less than your employer is willing to match, you might be passing up free money.\n\n## The Value of a Corporate Match\nOver time, an employer match can add a substantial amount to your retirement nest egg.\n\nLet's assume you’re 22 years old, make \\$40,000 annually and contribute 3 percent of your salary (\\$1,200) to your 401(k). And, for the sake of this example, let's also assume you’ll continue to make the same salary and same contribution each year until you’re 65. After 43 years, you’ll have contributed \\$51,600 to your 401(k).\n\nNow let's assume you get a dollar-for-dollar match from your employer for your 401(k) contributions of up to 3 percent of your salary. This match, commonly offered by employers, literally doubles your total savings in the example above from \\$51,600 to \\$103,200. That's \\$51,600 in free money! And any other potential growth in the value of your investments will increase your 401(k) balance further.\n\nNot all employers provide matches to employee contributions, so ask your company’s human resources or benefits department if you’re uncertain. Also find out the maximum percent of salary that your company will match.\n\nIf you’re struggling to set aside the maximum match amount due to other financial obligations, you might still be able to take advantage of an employer match: Some employers will now make matching contributions to certain types of employee retirement accounts based on the employee’s qualified student loan payments, broadly defined as any debt an employee takes on to pay higher education expenses. If you’re focused on paying down student debt, ask your employer if they offer this option.\n\n## The Earlier, The Better\nEarly on in your career, handling your finances might seem more like juggling, and you might not be able to save large amounts of money as a young investor. But one very important asset that you do have on your side is time. If used to its best advantage, time can be a powerful wealth-building asset. The earlier you start saving for retirement, the more it will pay off.\n\nContinuing with the example above, let’s say that you wait a few years before starting to make 401(k) contributions. At age 30, you begin contributing 3 percent of your \\$40,000 annual salary to your 401(k). Upon retirement at 65, having made the same salary and same contribution each year, you’ll have saved \\$82,000 with the combination of your contribution and your employer’s match. That’s nearly 20 percent less than you’d have saved if you’d started at 22 years old.\n\nThe sooner you start saving, the more time your money has to grow—and thanks to the power of [compound interest](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/compound-interest-calculator) (essentially the interest you earn upon interest), that growth can be significant.\n\nThose numbers can be even higher the more you contribute to your retirement account. Check the [IRS contribution limits](https:\/\/www.finra.org\/investors\/investing\/investment-accounts\/retirement-accounts\/annual-contribution-limits) for 401(k) plans and use FINRA’s [Save the Max Calculator](https:\/\/tools.finra.org\/max401k\/) to see if you’re on track to save the maximum in your 401(k) this year.\n\n## Tax Advantages\nIn addition to helping you prepare for the future, contributing to a 401(k) can provide significant tax advantages today.\n\nContributions to a traditional 401(k) are made with [pre-tax](https:\/\/www.finra.org\/investors\/insights\/tax-advantaged) dollars—meaning the money goes into your retirement account before it gets taxed. With pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you’ll owe less in income taxes for the year. You won’t owe any taxes on these funds until you withdraw money from your account, typically after you retire.\n\nUsing the example above, the \\$1,200 you contribute to a traditional 401(k) in a given year will reduce the gross income you must report to the IRS for that year from \\$40,000 to \\$38,800.\n\nWith a Roth 401(k), you make contributions with after-tax dollars. However, employers may make matching contributions on a pre-tax basis. Check with your employer about the options available for your plan, and be sure to talk with a tax specialist and\/or investment professional to discuss your personal situation.\n\n## What to Take Away\nEven contributing at the match threshold might not be enough to fully fund a secure retirement, and you might need to save in other ways to generate enough replacement income during retirement to maintain your standard of living. But that should never discourage you from saving what you can now. Everyone’s circumstances are different, and any contribution is better than none.\n\nBy starting early and increasing your contributions over time, particularly when you experience an increase in salary, you can maximize your savings and have more money in retirement.\n\n[Learn more](https:\/\/www.finra.org\/investors\/investing\/investment-accounts\/retirement-accounts#types) about 401(k)s and other employer-sponsored plans.\n\n*Updated: 02\/27\/2025*","meta_canonical":null,"ml_categories_json":"{\"\/Finance\":978,\"\/Finance\/Financial_Planning_and_Management\":882,\"\/Finance\/Financial_Planning_and_Management\/Retirement_and_Pension\":877}","ml_types_json":"{\"\/Article\":993,\"\/Article\/Tutorial_or_Guide\":938}","ml_intent_types_json":"{\"Informational\":998}","meta_language":"en","attrs_author":null,"attrs_publish_time":1690891200,"attrs_original_publish_time":1690891200,"attrs_is_republished":0,"attrs_nr_words":"1726","attrs_boilerpipe_nr_words":"904","body_ext_links_number":13,"body_int_links_number":132,"meta_nofollow":0,"meta_noarchive":0,"props_was_rendered":1,"src_redirect":"","download_time_msec":121,"download_ttfb_msec":121,"download_size":20573}

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The Beginner’s Guide to 401(k)s | FINRA.org

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If you’re just starting your career, planning for retirement might be the last thing on your mind. However, the choices you make now can significantly affect your finances in the future. You don’t want to overlook is the 401(k), which can be a powerful resource for building a secure retirement.

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If you’re just starting your career, planning for retirement might be the last thing on your mind. You might be facing numerous financial challenges today—student loans, competitive job markets, rising housing costs, piles of bills—that seem more demanding of your attention than something so far down the road. However, the choices you make now are important and can significantly affect your finances in the future. When scrutinizing the benefits offered by your employer, there's one that you don't want to overlook: the 401(k). A 401(k) or similar employer-sponsored retirement plan can be a powerful resource for building a secure retirement, and many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute at or beyond that threshold, you’ll be taking full advantage of the benefit. But if you contribute less than your employer is willing to match, you might be passing up free money. The Value of a Corporate Match Over time, an employer match can add a substantial amount to your retirement nest egg. Let's assume you’re 22 years old, make $40,000 annually and contribute 3 percent of your salary ($1,200) to your 401(k). And, for the sake of this example, let's also assume you’ll continue to make the same salary and same contribution each year until you’re 65. After 43 years, you’ll have contributed $51,600 to your 401(k). Now let's assume you get a dollar-for-dollar match from your employer for your 401(k) contributions of up to 3 percent of your salary. This match, commonly offered by employers, literally doubles your total savings in the example above from $51,600 to $103,200. That's $51,600 in free money! And any other potential growth in the value of your investments will increase your 401(k) balance further. Not all employers provide matches to employee contributions, so ask your company’s human resources or benefits department if you’re uncertain. Also find out the maximum percent of salary that your company will match. If you’re struggling to set aside the maximum match amount due to other financial obligations, you might still be able to take advantage of an employer match: Some employers will now make matching contributions to certain types of employee retirement accounts based on the employee’s qualified student loan payments, broadly defined as any debt an employee takes on to pay higher education expenses. If you’re focused on paying down student debt, ask your employer if they offer this option. The Earlier, The Better Early on in your career, handling your finances might seem more like juggling, and you might not be able to save large amounts of money as a young investor. But one very important asset that you do have on your side is time. If used to its best advantage, time can be a powerful wealth-building asset. The earlier you start saving for retirement, the more it will pay off. Continuing with the example above, let’s say that you wait a few years before starting to make 401(k) contributions. At age 30, you begin contributing 3 percent of your $40,000 annual salary to your 401(k). Upon retirement at 65, having made the same salary and same contribution each year, you’ll have saved $82,000 with the combination of your contribution and your employer’s match. That’s nearly 20 percent less than you’d have saved if you’d started at 22 years old. The sooner you start saving, the more time your money has to grow—and thanks to the power of compound interest (essentially the interest you earn upon interest), that growth can be significant. Those numbers can be even higher the more you contribute to your retirement account. Check the IRS contribution limits for 401(k) plans and use FINRA’s Save the Max Calculator to see if you’re on track to save the maximum in your 401(k) this year. Tax Advantages In addition to helping you prepare for the future, contributing to a 401(k) can provide significant tax advantages today. Contributions to a traditional 401(k) are made with pre-tax dollars—meaning the money goes into your retirement account before it gets taxed. With pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you’ll owe less in income taxes for the year. You won’t owe any taxes on these funds until you withdraw money from your account, typically after you retire. Using the example above, the $1,200 you contribute to a traditional 401(k) in a given year will reduce the gross income you must report to the IRS for that year from $40,000 to $38,800. With a Roth 401(k), you make contributions with after-tax dollars. However, employers may make matching contributions on a pre-tax basis. Check with your employer about the options available for your plan, and be sure to talk with a tax specialist and/or investment professional to discuss your personal situation. What to Take Away Even contributing at the match threshold might not be enough to fully fund a secure retirement, and you might need to save in other ways to generate enough replacement income during retirement to maintain your standard of living. But that should never discourage you from saving what you can now. Everyone’s circumstances are different, and any contribution is better than none. By starting early and increasing your contributions over time, particularly when you experience an increase in salary, you can maximize your savings and have more money in retirement. Learn more about 401(k)s and other employer-sponsored plans. Updated: 02/27/2025

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[Login to FINRA DATA](https://ews.finra.org/auth/logon?realm=ews&goto=https%3A//gateway.finra.org/app/data%3FrcpRedirNum%3D1) For Industry Professionals [FINPRO GATEWAY](https://finpro.finra.org/) Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks. [Login to FINPRO GATEWAY](https://finpro.finra.org/) For Member Firms [FINRA GATEWAY](https://gateway.finra.org/) Firm compliance professionals can access filings and requests, run reports and submit support tickets. [Login to FINRA GATEWAY](https://gateway.finra.org/) For Case Participants [DR PORTAL](https://drportal.finra.org/) Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal. [Login to DR PORTAL](https://drportal.finra.org/) [Need Help?](https://tools.finra.org/cc_support/) \| [Check System Status](https://www.finra.org/filing-reporting/systems-status) [Log In to other FINRA systems](https://www.finra.org/filing-reporting/entitlement/systems) 1. [For Investors](https://www.finra.org/investors) 2. [Investor Insights](https://www.finra.org/investors/insights) EXPLORE THIS SECTION ## FINRA Main Navigation - [Investor Insights](https://www.finra.org/investors/insights) - [Tools & Calculators](https://www.finra.org/investors/tools-and-calculators) - [Personal Finance](https://www.finra.org/investors/personal-finance) - [Investing](https://www.finra.org/investors/investing) - [Investing Basics](https://www.finra.org/investors/investing/investing-basics) - [Investment Accounts](https://www.finra.org/investors/investing/investment-accounts) - [Investment Products](https://www.finra.org/investors/investing/investment-products) - [Investment Strategies](https://www.finra.org/investors/investing/investing-basics/investment-strategies) - [Working With an Investment Professional](https://www.finra.org/investors/investing/working-with-investment-professional) - [Protect Your Money](https://www.finra.org/investors/protect-your-money) - [Check Registration](https://www.finra.org/investors/protect-your-money/check-registration) - [Avoid Fraud](https://www.finra.org/investors/protect-your-money/avoid-fraud) - [Watch for Red Flags](https://www.finra.org/investors/protect-your-money/watch-red-flags) - [Safeguard Your Identity](https://www.finra.org/investors/protect-your-money/safeguard-your-identity) - [For the Military](https://www.finra.org/investors/military) - [Need Help?](https://www.finra.org/investors/need-help) Investment Accounts # The Beginner’s Guide to 401(k)s August 01, 2023 ![The College Grad's Guide to 401(k)s](https://www.finra.org/sites/default/files/wp-content/uploads/2015/05/shutterstock_161760842-1440x670.jpg) If you’re just starting your career, planning for retirement might be the last thing on your mind. You might be facing numerous financial challenges today—student loans, competitive job markets, rising housing costs, piles of bills—that seem more demanding of your attention than something so far down the road. However, the choices you make now are important and can significantly affect your finances in the future. When scrutinizing the benefits offered by your employer, there's one that you don't want to overlook: the 401(k). A 401(k) or similar employer-sponsored retirement plan can be a powerful resource for building a secure retirement, and many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute at or beyond that threshold, you’ll be taking full advantage of the benefit. But if you contribute less than your employer is willing to match, you might be passing up free money. ## The Value of a Corporate Match Over time, an employer match can add a substantial amount to your retirement nest egg. Let's assume you’re 22 years old, make \$40,000 annually and contribute 3 percent of your salary (\$1,200) to your 401(k). And, for the sake of this example, let's also assume you’ll continue to make the same salary and same contribution each year until you’re 65. After 43 years, you’ll have contributed \$51,600 to your 401(k). Now let's assume you get a dollar-for-dollar match from your employer for your 401(k) contributions of up to 3 percent of your salary. This match, commonly offered by employers, literally doubles your total savings in the example above from \$51,600 to \$103,200. That's \$51,600 in free money! And any other potential growth in the value of your investments will increase your 401(k) balance further. Not all employers provide matches to employee contributions, so ask your company’s human resources or benefits department if you’re uncertain. Also find out the maximum percent of salary that your company will match. If you’re struggling to set aside the maximum match amount due to other financial obligations, you might still be able to take advantage of an employer match: Some employers will now make matching contributions to certain types of employee retirement accounts based on the employee’s qualified student loan payments, broadly defined as any debt an employee takes on to pay higher education expenses. If you’re focused on paying down student debt, ask your employer if they offer this option. ## The Earlier, The Better Early on in your career, handling your finances might seem more like juggling, and you might not be able to save large amounts of money as a young investor. But one very important asset that you do have on your side is time. If used to its best advantage, time can be a powerful wealth-building asset. The earlier you start saving for retirement, the more it will pay off. Continuing with the example above, let’s say that you wait a few years before starting to make 401(k) contributions. At age 30, you begin contributing 3 percent of your \$40,000 annual salary to your 401(k). Upon retirement at 65, having made the same salary and same contribution each year, you’ll have saved \$82,000 with the combination of your contribution and your employer’s match. That’s nearly 20 percent less than you’d have saved if you’d started at 22 years old. The sooner you start saving, the more time your money has to grow—and thanks to the power of [compound interest](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator) (essentially the interest you earn upon interest), that growth can be significant. Those numbers can be even higher the more you contribute to your retirement account. Check the [IRS contribution limits](https://www.finra.org/investors/investing/investment-accounts/retirement-accounts/annual-contribution-limits) for 401(k) plans and use FINRA’s [Save the Max Calculator](https://tools.finra.org/max401k/) to see if you’re on track to save the maximum in your 401(k) this year. ## Tax Advantages In addition to helping you prepare for the future, contributing to a 401(k) can provide significant tax advantages today. Contributions to a traditional 401(k) are made with [pre-tax](https://www.finra.org/investors/insights/tax-advantaged) dollars—meaning the money goes into your retirement account before it gets taxed. With pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you’ll owe less in income taxes for the year. You won’t owe any taxes on these funds until you withdraw money from your account, typically after you retire. Using the example above, the \$1,200 you contribute to a traditional 401(k) in a given year will reduce the gross income you must report to the IRS for that year from \$40,000 to \$38,800. With a Roth 401(k), you make contributions with after-tax dollars. However, employers may make matching contributions on a pre-tax basis. Check with your employer about the options available for your plan, and be sure to talk with a tax specialist and/or investment professional to discuss your personal situation. ## What to Take Away Even contributing at the match threshold might not be enough to fully fund a secure retirement, and you might need to save in other ways to generate enough replacement income during retirement to maintain your standard of living. But that should never discourage you from saving what you can now. Everyone’s circumstances are different, and any contribution is better than none. By starting early and increasing your contributions over time, particularly when you experience an increase in salary, you can maximize your savings and have more money in retirement. [Learn more](https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#types) about 401(k)s and other employer-sponsored plans. *Updated: 02/27/2025* ## TOOLS & CALCULATORS [Smart Investing Courses](https://www.finra.org/investors/investing/investing-basics/smart-investing-courses) *** [Market Data Center](https://finra-markets.morningstar.com/MarketData/Default.jsp) *** [Fixed Income Data](https://www.finra.org/finra-data/fixed-income) *** [BrokerCheck](https://brokercheck.finra.org/) *** [Fund Analyzer](https://www.finra.org/fundanalyzer) [View All tools and calculators](https://www.finra.org/investors/tools-and-calculators) ### Recent Investor Insights [![](https://www.finra.org/sites/default/files/styles/crop_thumbnail/public/2026-04/iStock-1387071403-880x415.jpg?itok=XXnT7YXt) Investing Understanding the New Intraday Margin Requirements](https://www.finra.org/investors/insights/intraday-margin-requirements) [![](https://www.finra.org/sites/default/files/styles/crop_thumbnail/public/2021-09/closed-padlock-on-keyboard-id507881770.jpg?itok=saudWxr5) Avoid Fraud Customer Account Takeovers: What They Are and How to Protect Yourself](https://www.finra.org/investors/insights/customer-account-takeovers) [![](https://www.finra.org/sites/default/files/styles/crop_thumbnail/public/2022-03/precious-metals-istock-1271246933-640x302.jpg?itok=QR2sQxNh) Futures and Commodities 4 Tips to Know Before Buying Physical Precious Metals](https://www.finra.org/investors/insights/physical-precious-metals) [View All](https://www.finra.org/investors/insights) [![Home](https://www.finra.org/themes/custom/finra_bootstrap_sass/images/FINRA_Logo.svg)](https://www.finra.org/ "Home") ## FINRA Utility Menu - [About Us](https://www.finra.org/about) - [Careers](https://www.finra.org/careers) - [BrokerCheck](https://brokercheck.finra.org/) - [Data](https://www.finra.org/finra-data) - [Media Center](https://www.finra.org/media-center) - [For Firms](https://www.finra.org/member-firm-hub) ## FINRA Main Navigation - [Rules & Guidance](https://www.finra.org/rules-guidance) - [Registration, Exams & CE](https://www.finra.org/registration-exams-ce) - [Events & Training](https://www.finra.org/events-training) - [Filing & Reporting](https://www.finra.org/filing-reporting) - [Compliance Tools](https://www.finra.org/compliance-tools) - [For Investors](https://www.finra.org/investors) [General Inquiries](https://www.finra.org/contact-finra/) 301-590-6500 [Securities Helpline for Seniors®](https://www.finra.org/investors/have-a-problem/helpline-seniors) 844-574-3577 (Mon-Fri 9am-5pm ET) [File a Regulatory Tip](https://www.finra.org/contact-finra/file-tip) To report on abuse or fraud in the industry [Arbitration & Mediation](https://www.finra.org/arbitration-mediation) FINRA operates the largest securities dispute resolution forum in the United States [File an Investor Complaint](https://www.finra.org/investors/need-help/file-a-complaint) File a complaint about fraud or unfair practices. [Small Firm Help Line](https://www.finra.org/compliance-tools/finra-small-firm-helpline) 833-26-FINRA (Mon-Fri 9am-6pm ET) [Office of the Ombuds](https://www.finra.org/about/office-ombuds) Report a concern about FINRA at 888-700-0028 ## Footer Legal Links - [Site Map](https://www.finra.org/site-map) - [Privacy Policy](https://www.finra.org/privacy-policy) - [Terms of Use](https://www.finra.org/terms-of-use) - [Translate](https://www.finra.org/translate) - [Contact Us](https://www.finra.org/contact-finra) © 2026 FINRA. All Rights Reserved. FINRA is a Registered Trademark of the Financial Industry Regulatory Authority, Inc. ![](https://www.facebook.com/tr?id=1621322547905865&ev=PageView&noscript=1)

Readable Markdown

If you’re just starting your career, planning for retirement might be the last thing on your mind. You might be facing numerous financial challenges today—student loans, competitive job markets, rising housing costs, piles of bills—that seem more demanding of your attention than something so far down the road. However, the choices you make now are important and can significantly affect your finances in the future. When scrutinizing the benefits offered by your employer, there's one that you don't want to overlook: the 401(k). A 401(k) or similar employer-sponsored retirement plan can be a powerful resource for building a secure retirement, and many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute at or beyond that threshold, you’ll be taking full advantage of the benefit. But if you contribute less than your employer is willing to match, you might be passing up free money. ## The Value of a Corporate Match Over time, an employer match can add a substantial amount to your retirement nest egg. Let's assume you’re 22 years old, make \$40,000 annually and contribute 3 percent of your salary (\$1,200) to your 401(k). And, for the sake of this example, let's also assume you’ll continue to make the same salary and same contribution each year until you’re 65. After 43 years, you’ll have contributed \$51,600 to your 401(k). Now let's assume you get a dollar-for-dollar match from your employer for your 401(k) contributions of up to 3 percent of your salary. This match, commonly offered by employers, literally doubles your total savings in the example above from \$51,600 to \$103,200. That's \$51,600 in free money! And any other potential growth in the value of your investments will increase your 401(k) balance further. Not all employers provide matches to employee contributions, so ask your company’s human resources or benefits department if you’re uncertain. Also find out the maximum percent of salary that your company will match. If you’re struggling to set aside the maximum match amount due to other financial obligations, you might still be able to take advantage of an employer match: Some employers will now make matching contributions to certain types of employee retirement accounts based on the employee’s qualified student loan payments, broadly defined as any debt an employee takes on to pay higher education expenses. If you’re focused on paying down student debt, ask your employer if they offer this option. ## The Earlier, The Better Early on in your career, handling your finances might seem more like juggling, and you might not be able to save large amounts of money as a young investor. But one very important asset that you do have on your side is time. If used to its best advantage, time can be a powerful wealth-building asset. The earlier you start saving for retirement, the more it will pay off. Continuing with the example above, let’s say that you wait a few years before starting to make 401(k) contributions. At age 30, you begin contributing 3 percent of your \$40,000 annual salary to your 401(k). Upon retirement at 65, having made the same salary and same contribution each year, you’ll have saved \$82,000 with the combination of your contribution and your employer’s match. That’s nearly 20 percent less than you’d have saved if you’d started at 22 years old. The sooner you start saving, the more time your money has to grow—and thanks to the power of [compound interest](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator) (essentially the interest you earn upon interest), that growth can be significant. Those numbers can be even higher the more you contribute to your retirement account. Check the [IRS contribution limits](https://www.finra.org/investors/investing/investment-accounts/retirement-accounts/annual-contribution-limits) for 401(k) plans and use FINRA’s [Save the Max Calculator](https://tools.finra.org/max401k/) to see if you’re on track to save the maximum in your 401(k) this year. ## Tax Advantages In addition to helping you prepare for the future, contributing to a 401(k) can provide significant tax advantages today. Contributions to a traditional 401(k) are made with [pre-tax](https://www.finra.org/investors/insights/tax-advantaged) dollars—meaning the money goes into your retirement account before it gets taxed. With pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you’ll owe less in income taxes for the year. You won’t owe any taxes on these funds until you withdraw money from your account, typically after you retire. Using the example above, the \$1,200 you contribute to a traditional 401(k) in a given year will reduce the gross income you must report to the IRS for that year from \$40,000 to \$38,800. With a Roth 401(k), you make contributions with after-tax dollars. However, employers may make matching contributions on a pre-tax basis. Check with your employer about the options available for your plan, and be sure to talk with a tax specialist and/or investment professional to discuss your personal situation. ## What to Take Away Even contributing at the match threshold might not be enough to fully fund a secure retirement, and you might need to save in other ways to generate enough replacement income during retirement to maintain your standard of living. But that should never discourage you from saving what you can now. Everyone’s circumstances are different, and any contribution is better than none. By starting early and increasing your contributions over time, particularly when you experience an increase in salary, you can maximize your savings and have more money in retirement. [Learn more](https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#types) about 401(k)s and other employer-sponsored plans. *Updated: 02/27/2025*

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