If You Don't Know These 3 Things About Your 401(k), You're Losing Out
Not everyone has access to a 401(k) plan through work, but if your employer does offer a retirement savings option, it certainly pays to capitalize on it. But if you don't understand the ins and outs of your plan, you could wind up missing out on valuable opportunities to grow your wealth. Here are a few important points you must know with regard to your 401(k).
Each year, the IRS sets a limit on how much workers are allowed to contribute to a 401(k) based on age. For 2019, you can sock away up to $19,000 if you're under 50. If you're 50 or older, you get a $6,000 catch-up provision that raises this limit to $25,000.
Beginning in 2020, the annual contribution limits for 401(k)s are rising. If you're under 50, you'll max out at $19,500, and if you're 50 or older, your catch-up increases to $6,500 so that your total allowable contribution for the year is $26,000.
Source Fool.com
