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Some companies require participants to declare their desire to participate in the 401(k). You'll have to fill out paperwork saying that you'd like to contribute to the plan and how much money you'd like to set aside initially. You can always change this later.

When you sign up you'll also need to choose your beneficiary. This is the person you'd like to inherit your 401(k) if you die. Usually, you choose a primary beneficiary and a secondary, or contingent, a beneficiary who will inherit the 401(k) if the primary beneficiary is deceased or doesn't want the money.

What if I don't have access to a 401(k)?

If you don't work for a company that offers a 401(k), you can save for retirement using one or more of these other accounts:

• 403(b): A 403(b) is similar to a 401(k), but it's available only to public school employees, select ministers, and employees of tax-exempt organizations.
• SIMPLE IRA: A SIMPLE IRA is designed for self-employed individuals and small business owners. It offers fairly high contribution limits and has mandatory contribution requirements for employers.
• SEP IRA: A SEP IRA is available to self-employed individuals with or without employees. Contribution limits depend in part on annual income.
• Solo 401(k): A solo 401(k) is simply a 401(k) that a self-employed person can open for themselves. Contribution limits are higher than for traditional 401(k)s because you can make contributions as both employee and employer.
• IRA: Anyone can open and contribute to an IRA if they're earning income throughout the year, but these accounts have more restricted contribution limits.

How to maintain your 401(k)

While you shouldn't worry about your 401(k) daily (or even weekly), you must regularly revisit it to determine if you need to make any changes to your contribution amount or to your asset allocation. Check-in at least once or twice per year or following any major life event that could affect your finances or retirement plans such as if you get married or have a child.

Look at how your investments are performing. Small losses here and there are to be expected, especially if you have a lot of your money invested in riskier assets like stocks. But, if you're routinely losing money, that's a sign something needs to change. You may also consider moving some of your money around if it's underperforming major market benchmark indexes, like the Dow Jones Industrial Average and the S&P 500. Switching to an affordable index fund that tracks these benchmarks may provide better, more predictable returns.