Once you start work, you might not be able to put money into your 401(k) right away. The law allows employers to delay your eligibility for up to a full year. Ask your company's human resources department for details or for a copy of the summary plan description, a document that describes all of the plan's rules. It must be given to any employee upon request.
There are a few other caveats as well. For one, you must be at least 21 years old to participate. In addition, you can contribute only as much money to an employer's 401(k) plan as you make from that particular employer. Money earned from other sources must go into a different plan.
LifeWire, a part of The New York Times Company, provides original and syndicated online lifestyle content. David Fisher is a freelance writer based in Bend, Ore. In addition to 25 years as a writer and editor, he has worked as a professional financial adviser.
