401(k) dos and don’ts

Learn what to do—and what not to do—with this type of retirement account.

Jan, 2026

DON'T: Be tempted to contribute less to your 401(k) in favor of shiny short-term objects

DON'T: Borrow from your 401(k) unless you really need to

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Slide 1

A 401(k) is one type of retirement plan some companies establish for their employees. If your company has one, you can open an account and make contributions directly from your paycheck. Employers often also make a contribution to your account—it’s like getting free money. If you find that a 401(k) is right for you, here are some dos and don'ts to consider when establishing one.