Getting Started & Contributions
How much should I contribute?
That depends on your budget, your goals, and your overall financial picture. A common starting point is contributing at least enough to receive your full employer match, since matching contributions are additional compensation you would otherwise forgo. Beyond that, general financial guidance often suggests working toward 10–15% of income over time. The 2026 elective deferral limit is $24,500, with an additional $8,000 catch-up if you are 50 or older. This is general information, not personalized advice.
Can I make Roth contributions?
Yes. Plans we support offer both pre-tax (traditional) and Roth (after-tax) options. Pre-tax contributions reduce your taxable income now — you pay taxes when you withdraw in retirement. Roth contributions are made with money you have already paid taxes on, so qualified withdrawals in retirement are tax-free, including growth, subject to IRS requirements. Which option fits depends on your tax situation — a tax professional can help you weigh it.
What is auto-enrollment?
Auto-enrollment means your employer automatically enrolls you in the 401(k) at a default contribution rate — typically 3–6% of your pay — when you become eligible. You do not have to do anything to start saving. If you do not want to participate, you can opt out. Vanguard's How America Saves 2026 reports a 94% participation rate across plans with automatic enrollment, compared with 64% in voluntary enrollment plans.
How do I change my contribution amount?
Log into your participant dashboard from any device — phone, tablet, or computer — and update your deferral amount. Changes generally take effect on your next payroll cycle. There is no limit to how often you can adjust it.
What are the 2026 contribution limits?
For 2026, the elective deferral limit is $24,500. Participants age 50 and older can contribute an additional $8,000 catch-up, for a total of $32,500. Participants who turn 60, 61, 62, or 63 during 2026 may use a higher catch-up of $11,250, for a total of $35,750. Source: IRS Notice 2025-67. See the full
2026 retirement plan limits.
Investments & Your Portfolio
What will I invest in?
Your plan offers a lineup of investment options — stocks, bonds, and funds — selected and monitored by a fiduciary investment manager. When you enroll, a guided portfolio builder asks about your retirement timeline and risk tolerance, then suggests a fund mix. You can accept the suggestion, adjust it, or build your own selection. All investing involves risk, including possible loss of principal, and no investment mix can guarantee a result.
What if I have no investment experience?
That is completely fine — and exactly why the portfolio builder exists. It asks a few simple questions and suggests a mix that fits your timeline and comfort with risk. You do not need to understand individual funds to get started. If you want more guidance, live human support is available by phone and email.
How is a 401(k) different from a savings account?
A 401(k) is an investment account, not a deposit account. Your contributions are invested in the market — in stocks, bonds, and funds — so the value can rise or fall, and there is no guaranteed rate of return. Contributions are automatic from your paycheck, your employer may match them, and growth is tax-deferred (or tax-free, if Roth). A savings account earns interest and is generally insured up to applicable limits, but typically grows more slowly.
What are the Franchise401 Financial Wellness Tools?
A suite of financial planning resources included at no extra charge for all participants. They cover budgeting, debt reduction, emergency savings, and retirement income planning — tools designed to help you build financial stability beyond just your 401(k) balance. Access them directly from your participant dashboard.
Loans, Withdrawals & Leaving
Can I take a loan from my 401(k)?
Yes, if your plan allows loans. You can generally borrow up to 50% of your vested account balance, up to $50,000. The loan is repaid with interest through payroll deductions, usually within five years. There is no tax or penalty as long as you repay on schedule; an unpaid balance may be treated as a taxable distribution. Keep in mind that money on loan is not invested, so it does not participate in market growth while it is outstanding. Under the current fee schedule, there is no loan origination fee.
What is a hardship withdrawal?
A hardship withdrawal lets you take money from your 401(k) for an immediate, serious financial need — such as medical expenses, preventing eviction or foreclosure, funeral costs, or certain education expenses. Unlike a loan, you do not repay it. The amount is generally taxable as income, and if you are under 59½, a 10% early withdrawal penalty typically applies. Money withdrawn also stops growing tax-deferred.
What happens to my 401(k) if I leave my job?
You generally have four options: leave the account where it is (a small monthly fee may apply), roll the balance into your new employer's plan if it accepts rollovers, roll it into an IRA you control, or take a cash distribution. These options differ in fees, investment choices, available services, creditor protection, and required minimum distribution treatment — worth comparing before you decide. A cash distribution before age 59½ is generally taxed as ordinary income and subject to a 10% early withdrawal penalty.
What is vesting and does it affect my account?
Vesting determines how much of your employer's contributions belong to you if you leave before a certain time. Your own contributions are always 100% yours from day one. Employer contributions may vest on a schedule — for example, 25% per year over four years — or all at once after a set period. Ask your HR team for the vesting schedule so you know exactly what you would take with you if you left today.
Can I roll my IRA into my 401(k)?
Traditional IRA funds can generally be rolled into a 401(k) if the plan accepts rollovers, and our support team can help coordinate it. Roth IRA funds generally cannot be rolled into a pre-tax 401(k) account. Whether a rollover makes sense depends on the fees, investment options, services, and protections of each account — compare both before deciding.
This page is general educational information for plan participants. It is not investment, tax, or legal advice, is not a recommendation to take or avoid any particular action, and does not account for your individual circumstances. All investing involves risk, including possible loss of principal; investment values fluctuate and past performance does not guarantee future results. Employer matching contributions are subject to your plan's eligibility and vesting schedule. Contribution limits are per IRS Notice 2025-67 and may change. Loan, hardship, and distribution provisions vary by plan — consult your plan document and Summary Plan Description. Participation, auto-enrollment, and fee terms are governed by your employer's plan; the $0 transaction fees described reflect the platform's current published fee schedule, and investment options carry their own internal expenses disclosed in your annual participant fee disclosure. Rollover decisions involve trade-offs in cost, investment choices, services, and protections; consider comparing your options and speaking with a tax professional before acting.
