Don't Max Out Your 401(k) Until You Do This First
You'll often hear that it's a good thing to max out your 401(k). Not only can that shield more of your income from taxes (assuming it's a traditional 401(k) plan you're funding, as opposed to a Roth), but it can also set you up with a larger nest egg down the line.
This year, maxing out a 401(k) means contributing $23,000 to that account if you're under 50. If you're 50 or older, you get a $6,500 catch-up contribution option that raises your total to $30,500.
Your goal this year may be to max out your 401(k) plan -- especially if you've never done so before. But before you focus on that, there's another financial goal that may need your attention.
Source Fool.com
