Everything you can do with your 401(k), in one place.

Which 401(k) Scenario Are You In?

Pick the decision in front of you. Each card jumps to a plain-English summary below, with the numbers and IRS rules that matter.

How Do You Grow a 401(k) Faster While You Are Still Working?

Three levers decide the final balance: how much of your pay you defer, whether you capture the full employer match, and how long the money compounds. For a typical saver, market growth ends up supplying roughly three-quarters of the balance at retirement — the earlier dollars go in, the bigger that share.

• Employee deferral limit (2026)$24,500Your own pre-tax and Roth contributions combined, across every workplace plan you belong to.
• Catch-up, age 50++$8,000Lifts your personal ceiling to $32,500. Earners above $150,000 in prior-year FICA wages must make catch-ups as Roth.
• Super catch-up, ages 60–63+$11,250Replaces the standard catch-up for these four years, for a ceiling of $35,750.
• Total additions cap$72,000Employee deferrals, employer match and profit-sharing together, excluding catch-ups.

Model your own deferral and match in the 401(k) growth calculator, see what each extra percent really costs per payslip with the paycheck calculator, and decide the tax treatment with the Roth vs traditional calculator. For age-based targets, read the Fidelity benchmarks for turning fifty and the Dave Ramsey Roth hierarchy.

Every 2026 figure, including how limits work across multiple employers, is in 401(k) contribution limits 2026. High earners should check the mandatory Roth catch-up rule, and anyone whose plan allows after-tax contributions can push far past $24,500 with the mega backdoor Roth.

What Are Your Options for an Old 401(k) When You Change Jobs?

Separation from an employer gives you four choices. Only one of them — cashing out — normally creates a tax bill.

The step-by-step mechanics, including rollovers into precious metals, are in How to transfer a 401(k) to gold without penalty.

Can You Use Your 401(k) to Fund a Business Without Penalty?

Yes — through a structure the IRS calls Rollovers as Business Startups (ROBS). Instead of withdrawing the money (and paying tax plus the 10% penalty) or borrowing it, you roll your retirement savings into a new plan that buys shares of your own company. The business receives cash with no loan payments and no interest.

1. Form a C corporationROBS only works with a C-corp; LLCs and S-corps cannot issue the stock
2. The C-corp adopts a new 401(k) planThe plan must permit investment in employer stock
3. Roll existing funds into the new plan401(k), 403(b), TSP or traditional IRA — not a Roth IRA
4. The plan buys shares of the corporationYour retirement money becomes company equity
5. The corporation uses the cashFranchise fees, equipment, payroll, or the equity injection for an SBA loan

ROBS is legal but closely watched: the IRS has documented compliance failures such as owners not drawing a salary, plans closed to new employees and missing valuations. Use a provider that sets up the corporation and administers the plan, and compare the result with an SBA loan or a 401(k) loan before committing your entire nest egg.

How Do You Move a 401(k) Into Gold or Other Precious Metals?

Workplace plans almost never hold physical bullion. The usual route is a direct rollover into a self-directed IRA whose custodian can buy IRS-approved metals and store them in an approved depository — the same tax shelter, a different asset.

Still employed? Many plans allow an in-service rollover once you reach 59½. Compare custody fees and dealer spreads before you move; they are the real cost of holding metals in an IRA.

How Does a 401(k) Loan Work and When Does It Make Sense?

If your plan offers loans, you can borrow from your own balance without tax or penalty and repay yourself with interest through payroll. It is usually the cheapest source of short-term cash a saver has — as long as you stay employed.

• Maximum loan$50,000Or 50% of your vested balance, whichever is less (plans may allow up to $10,000 when half the balance is smaller).
• Repayment term5 yearsLonger terms are allowed when the loan buys your primary residence.
• If you leave your jobTax-day deadlineThe outstanding balance must be repaid by your tax-filing deadline for that year, or it becomes a taxable distribution.

The hidden cost is opportunity cost: borrowed dollars sit outside the market. Compare a loan against cashing out with the early withdrawal calculator.

What Does It Really Cost to Withdraw From a 401(k) Early?

Before age 59½, a cash withdrawal is taxed as ordinary income and hit with a 10% additional tax. The plan also withholds 20% for federal tax up front, so the check is smaller than the bill suggests. Several exceptions remove the 10% penalty — though not the income tax:

See the exact cash that reaches your bank and the growth you give up in the 401(k) early withdrawal calculator. The full list of 14 exceptions, the 72(t) schedule and Roth-specific rules are covered in 401(k) early withdrawal penalty explained.

What Changes If You Are Self-Employed or Want Alternative Assets?

A Solo 401(k) covers a business owner with no full-time employees other than a spouse. You contribute twice — as the employee, up to the $24,500 deferral limit, and as the employer, up to 25% of compensation — which can reach the $72,000 total cap (plus catch-ups) on a far smaller income than a salaried worker needs.

A self-directed 401(k) or IRA goes further, holding assets ordinary plans do not: rental property, private loans, private-company shares or precious metals. The trade-off is strict prohibited-transaction rules — you, your family and your businesses cannot buy from, sell to, live in or personally benefit from the plan’s assets.

How Do You Turn a 401(k) Into Retirement Income?

From 59½ withdrawals are penalty-free, but the order in which you draw down accounts still changes how much tax you pay and how large your Social Security check becomes.

• Penalty-free withdrawals59½Or 55 under the Rule of 55 if you separate from that employer.
• Required minimum distributionsAge 73Rising to 75 for anyone born in 1960 or later. Roth 401(k) balances no longer have lifetime RMDs.
• Social Security bridgeUp to 70Spending 401(k) money first while delaying benefits can buy a permanently larger, inflation-indexed check.

The full break-even math is in the smartest strategy for living off a 401(k) before Social Security, and the tax side of the gap years in spend down your 401(k) before Social Security. To shrink future RMDs, see Roth conversions in 2026 and how SECURE 2.0 removed RMDs from Roth 401(k)s.

How Do the 401(k) Scenarios Compare Side by Side?

Common Questions About Using a 401(k)