What is the ruling on workplace pensions and retirement funds like a 401(k)?

If the plan offers a Sharīʿah-compliant or ethical equity option that avoids ribā-based banks, insurance, alcohol and similar, you should select it, and participation is then permissible and often prudent. Where enrolment is compulsory or the employer's matching contribution is only available through non-compliant default funds, many contemporary scholars and fatwa councils permit participation out of need, on condition that you purify the impermissible portion: your own contributions and the employer's grant are lawful earnings, but the ribā-derived growth must be calculated and given away to the poor or to public benefit without intending reward for it. Forfeiting an employer contribution entirely is not required by these scholars, though switching is obligatory where a genuinely compliant option exists. Because plan structures differ widely, the specific fund menu should be put to a qualified scholar. The principle is that the increase stipulated on lending is forbidden — "Allah has permitted trade and forbidden ribā" (Qurʾan 2:275) — and that Allah does not accept impure wealth: "Indeed Allah is Pure (Ṭayyib) and accepts only what is pure."

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