- For 2026, the contribution limit is $24,500 for individuals under 50.
- Individuals aged 50+ can contribute an additional $8,000 or $11,250 for ages 60-63 as a catch-up contribution.
A 401(k) is a tax-deferred retirement plan that deducts automatic, adjustable, pre-tax contributions. Learn how an Equitable 401(k) plan can help you retire smart.
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Maximize your retirement savings with a 401(k) plan
A 401(k) is a retirement savings plan that you receive through your employer as part of your benefits package. This plan has tax advantages as an incentive to invest and save for retirement. Your employer may even offer a match, which means they make a contribution based on what you invest. The money is yours, so you keep it even if you change jobs.
Benefits of a 401(k) plan
Investing in a 401(k) plan has many advantages, including the potential for employer-matching contributions, tax advantages and the ability to grow your retirement savings.
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Frequently asked questions
- An employer match is when your employer contributes additional funds to your 401(k) based on the amount you contribute. For example, an employer might match 50% of your contributions up to 6% of your salary.
- Pre-tax contributions are deducted from your gross income, reducing your taxable income for the year, and potentially lowering your tax bracket. Your earnings grow tax-deferred until you withdraw the money.
- Thanks to the power of compound interest, every dollar you invest has the potential to grow. That’s because when you have money invested, it earns interest. Eventually, your interest can earn interest. This is known as compound interest.
By putting $150 in pre-tax dollars per pay period into y our 401(k) plan, your savings could grow to $331,685 in 30 years.3
- You can withdraw funds without penalties starting at age 59½. Early withdrawals may incur a 10% penalty in addition to regular income taxes.
An RMD is a mandatory withdrawal that individuals must take from their retirement accounts, such as traditional IRAs, 401(k)s, 403(b)s and other tax-deferred retirement plans, starting at age 73 (or 70½ if you reached that age before January 1, 2020). Understanding RMDs is crucial for effective retirement planning and tax management.
1 This applies specifically and exclusively to Equitable Financial Life Insurance Company (Equitable Financial).
2 Based on 2023 federal tax tables, assuming married filing jointly (source: irs.gov). Figures do not take into account any other sources of income, state or local income taxes, tax credits or deductions.
3 This assumes a hypothetical 7.5% return and there are no withdrawals. Withdrawals are subject to ordinary income tax and, if made before age 59½, may be subject to an additional 10% federal income tax. This example is for illustrative purposes only and is not intended to represent an expected or guaranteed rate of return for any investment vehicle. This example does not take potential taxes, investment management fees or product-related charges into account. Your rate of return will vary. Amounts are fully taxable upon withdrawal and the accumulation values illustrated will be reduced, based on an individual’s tax rate.
Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with an administrative office located in Charlotte, NC; and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their claims-paying abilities.
GE-7197130.1 (10/2024) (Exp. 10/2026)
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