The Unfortunate Truth About Maxing Out Your 401(k)
A 401(k) can be an excellent tool to help investors reach their retirement goals. The high contribution limit -- $23,000 in 2024 (or $30,500 for those 50 and older) -- provides most investors with a substantial amount of tax-advantaged savings. Around 15% of all plan participants took full advantage of the generous limits in 2022, according to the most recent data from Vanguard.
But maxing out your 401(k) and ignoring other retirement savings options could be a major mistake. For all the benefits of a 401(k), there are some big downsides you should be aware of.
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Source Fool.com
