Can I open a 401(k) on my own?

Unless you are self-employed and can open a Solo 401(k), you usually cannot open a 401(k) on your own. If your employer doesn't offer one, you can look into other tax-advantaged retirement plans, such as an IRA.

How much does it cost to start investing in a 401(k)?

Your 401(k) contributions are withdrawn from your paycheck and there is usually no minimum amount to start contributing and investing.

Is $100 a month a good contribution to a 401(k)?

Generally, you should aim to contribute around 10% to 15% of your income to your 401(k). Doing so can help set you up for a secure retirement. However, any contributions can help you begin building wealth, so if you can't afford to contribute a lot, it's OK to get started with $100 per month or whatever amount you can manage.

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How to Open a 401(k)

These tax-favored retirement savings accounts are great -- if they're available to you. Find out how to get started with a 401(k) or open a solo 401(k).

By Christy Bieber – Updated Feb 13, 2026 at 3:22 PM EST | Fact-checked by Parker Hicks

Key Points

Check eligibility and backup plans for 401(k) if workplace doesn't offer one.
Contribute up to $23,500 in 2025, $24,500 in 2026, more for ages 60-63.
Choose low-fee investments and regularly update your 401(k) strategy.

A 401(k) can be a great home for your retirement savings, but to get the most out of yours, you have to understand how it works. It's also important to make sure you're eligible for your workplace's 401(k) and have a backup plan if you aren't, so you can still save for your future.

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An infographic outlining the 4 steps of how to open a 401(k) account. — Image source: The Motley Fool

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Understanding 401(k) Tax Rules

Yes, taxes are a factor with your 401(k). Here's what to consider.

Consider These Steps if Your 401(k) Is Losing Value

If your 401(k) is going in the wrong direction, learn what to do.

Rolling Over Your Old 401(k)

It's important to transfer 401(k) funds from old jobs into new investments. Here's how and why.

Can You Have an IRA and a 401(k)?

So can you have both? Yes, with some limitations.

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FAQ on How to Open a 401(k)

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About the Author

Christy Bieber is a contributing Motley Fool retirement and Social Security expert covering retirement planning, 401(k)s, IRAs, and other personal finance topics. Christy has written about finance since 2008 and previously taught business courses at Bryant & Stratton College. She holds a law degree from UCLA and a bachelor’s degree in English, media, and communication with a certificate in business management from the University of Rochester. In law school, she earned three CALI Awards for Excellence for the highest scores in civil procedure and contract law exams.

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