What is a 401(k)?

RetirementWarren TeamPublished April 25, 2026

Quick answer

A 401(k) is a retirement savings account offered by employers. Employees contribute a percentage of pay (pre-tax or Roth), often matched by the employer, and the money grows tax-deferred or tax-free until retirement.

How a 401(k) works: employee contribution, employer match, tax-deferred growth.

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. Read our disclaimers.

All questions

Get an answer built on your own numbers

Warren reads your accounts, then answers questions like this one with your real income, taxes and goals in mind.

Try Warren Free See a demo