A 401(k) is a popular employer-sponsored financial savings vehicle for retirement that lets workers save and invest a portion of their paycheck before taxes are taken out.

It’s important to take the time to understand some key features of this kind of retirement plan, like how much you can contribute; your vesting schedule; your company’s matching rules; what to do if you switch jobs; and why diversification is key.

A 401(k) is more than just a five or six or seven-digit figure that you hope will get you through retirement. So learning basic terms, reading through your statements, and getting to know the ins and outs of your individual plan will help better prepare you for the future, and could even help you save more.

Personal Finance 101 is a video series that aims to help you take control of your money. It’s hosted by Zacks Editor Madeleine Johnson, and covers a wide range of personal finance related topics. To watch more video content from Zacks, subscribe to Zacks Investment News today!

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