3 Reasons to Max Out Your 401(k) for a Year
Though 401(k)s aren't the only means of saving for retirement, and not all workers have access to one, if you're fortunate enough to have an employer who sponsors a 401(k), it pays to take advantage by signing up for an account. Unlike IRAs, which come with considerably lower annual contribution limits, 401(k)s allow current workers under 50 to put away up to $18,000 a year. Those 50 and older, meanwhile, get a $6,000 catch-up allowance that raises this threshold to $24,000. It's these generous contribution limits that enable so many savers to amass considerable nest eggs in time for retirement.
That said, most workers can't afford to part with that much money each year on a long-term basis, and many of us don't even come close to maxing out our 401(k)s. But what if you could somehow max out your plan contribution for just a single year during your career? It may seem like a far-off goal, but here are a few reasons to go for it.
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Source: Fool.com
