Why Maxing Out Your 401(K) Can Be Overrated
There are several options to choose from when it comes to retirement accounts. Most notably, a 401(k), traditional IRA, and Roth IRA. While all these accounts have one common goal -- helping you save and invest money for retirement -- there are fundamental differences you should know about them. One of these differences is the amount you're allowed to contribute to the account annually.
While a 401(k) has the highest contribution limit at $20,500 ($27,000 if you're 50 or older) for 2022 , maxing out your contributions may not always be the best move for some people -- especially those who aren't in a financial position to max out all of their retirement accounts.
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Source Fool.com
