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401(k) Plans: Overview, How They Work

By Kailey Hagen – Updated Nov 19, 2025 at 1:39 PM

Key Points

  • The max yearly 401(k) contributions is $23,500 for 2025, $24,500 for 2026; extra for ages 50+ and 60 to 63.
  • You can withdraw from your 401(k) at 59 1/2 without penalty; required distributions start at age 73.
  • Employer 401(k) matches can amplify savings; consider the impact of fees on net returns.
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About the Author

Kailey Hagen, CFP
Kailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning. Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.
TMFKailey
The Motley Fool has a disclosure policy.

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