Many individuals struggle to maximize their 401(k) contributions due to rising limits and average salary constraints. For 2025, contributors under 50 can contribute up to $23,500, while those over 50 benefit from a higher limit of $31,000. Additionally, individuals aged 60-63 can access an increased super-catch up of $11,250. It's crucial for employees to ensure they receive their employer's full match, as not doing so means losing out on free funds that could grow over time. This match is vital for retirement planning, despite maxing out being a significant challenge.
If you can't max out, at least try to snag your employer match in full.
Even if you earn $100,000 a year, maxing out means contributing roughly one-third of your paycheck.
If you don't get a 401(k) match, you're pretty much saying 'no thanks' to free money.
There's a reason most people with access to a 401(k) plan don't manage to contribute the max.
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