401(k) Contribution Rates Are Down. Here's Why That's a Problem
If you have a 401(k) plan through your job, your goal should be to max out your contributions or get as close to maxing out as possible. Now given that 401(k) contribution limits currently sit at $22,500 for workers under age 50 and $30,000 for those 50 and over, maxing out a 401(k) may be difficult these days. But in that case, your goal should be to consistently increase your contribution rate.
Unfortunately, recent data from Bank of America shows that 401(k) contribution rates shrunk in 2022. As of this past December, the average contribution rate across all participants was 6.4%, down from 6.6% in December 2021.
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Source Fool.com
