Keogh plan We’ll cover employer-sponsored plans, individual retirement accounts, and plans for self-employed individuals and small business owners. 401(k) A 401(k) is the most common type of employer-sponsored retirement plan. Your employer preselects a few investment choices and you defer a portion of each paycheck to the account. If you leave your job, you may take your 401(k) funds with you or leave them where they are. In 2020 and 2021, you can contribute up to $19,500 to a 401(k), plus an additional $6,500 if you're 50 or older. Some employers also match a portion of employee contributions. With few exceptions, you cannot withdraw funds from your 401(k) before 59 1/2 without penalty.