When it comes to saving for retirement, you have several options to help you reach your goals. One common option that many are familiar with: a 401(k) offered through your employer. And Americans are contributing to these plans more than ever. A study by Fidelity Investments found that the average 401(k) balance increased to $103,900 in Q4 of 2022, up 7% over the previous quarter and up 34% from 10 years ago.
Even though many are contributing to 401(k)s, you may still have questions. Some may still be wondering: What is a 401(k) and how does it work? Read on to learn the basics, how these retirement accounts work, and whether it’s the right plan for you.
