3 Ways to Make the Most of Your 401(k)

Not everyone has access to a 401(k), but if your employer offers one, you have a great opportunity to build a substantial nest egg for the future. That's because 401(k)s offer much higher annual contribution limits than IRAs. Currently, you can sock away up to $19,500 annually if you're under the age of 50, and if you're 50 or older, that limit increases to $26,000. With that in mind, here are a few things you can do to get the most out of your 401(k).

A large number of employers that offer 401(k)s also match employee contributions to some degree, and that's effectively free money going into your account. Be sure to find out what your company's match looks like so you contribute enough to take advantage of it. Keep in mind that matches are often dished out as a percentage of salary, so your employer might, for example, match up to 3% of yours. If you earn $50,000 a year, it means you'll need to contribute $1,500 from your own earnings to get $1,500 from your employer.

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Source Fool.com