3 Things to Know If You're Aiming to Max Out Your 401(k) This Year

The magic number for those planning to max out their 401(k)s this year is $19,500, though those 50 and older can bump this up to $26,000. It's a lofty goal, but reaching it can go a long way toward setting you up for a comfortable retirement. You're probably trying to figure out how you're going to save that much, but that's not the only question you should be asking yourself. Here are a few other things you need to keep in mind.

You usually can't withdraw funds from your 401(k) before age 59 1/2 without paying an early withdrawal penalty. The government waived this for 2020 so people affected by the pandemic can use their savings to help them cover essential expenses, but this limitation is likely going to come back at some point.

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Source Fool.com