What Are the 2019 401(k) Contribution Limits?
No matter what sort of lifestyle you picture for yourself in retirement, one thing's for sure: You're going to need savings to live comfortably. While you will get some income from Social Security if you worked long enough, or are/were married to someone who qualifies for it, those benefits will only replace about 40% of your salary if you were an average earner, and most seniors need a lot more than that to cover their expenses -- hence the need for savings.
You have a few different options for saving for retirement in a tax-advantaged fashion. You could open an IRA and invest your nest egg there. But if you work for a company that sponsors a 401(k) plan, you have a great opportunity to sock away some serious funds for your golden years. That's because 401(k)s come with generous annual contribution limits -- much higher than those of an IRA -- and if you're able to max out your contributions, you can not only lower your immediate tax burden during your working years, but also accumulate more wealth than you might imagine.
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