A company-sponsored retirement plan can include 401(k)s, 403(b)s, profit-sharing, and/or cash-balance plans. A 457(b) plans are similar to 401(k) plans and are offered to employees of federal, state, local governments, and some non-profit employers. You may have one or more of these. All of these plans make it easier for you to save money for retirement since your company opens up the account for you, and Vestwell's user-friendly portal walks you through the rest.
Each year, the IRS limits the amount you and your employer can contribute to your plan. For 2023 the 401(k) and 403(b) participant contribution limit is a total of $22,500, with a catch-up provision of an additional $7,500 for participants age 50 and older. Also, your employer may contribute in addition to the participant limits.