Getting the Most from Your 410(k) Plan
401(k) plans were established by Congress to encourage individual savings towards retirement. Offered through employers, the plans are generally available to eligible employees who are allowed to contribute a percent of their salary to the plan. In most plans, employees are given a menu of investment options that enable them to create a portfolio that is most suited for their investment preferences and risk tolerance.
Contributions are based on a percent of your salary up to a current maximum of $17,500 ($23,000 under the catch-up provision for people over age 50). If your income exceeds $110,000, there may be some additional limitations depending on how many lower paid employees participate in the plan.