4 Reasons Not to Max Out Your 401(k) in 2021
Most of us would agree that contributing as much as possible to your retirement accounts is a good idea. But you may not be in a position to devote the maximum amount to your 401(k) -- $19,500 in 2021 ($26,000 if you're over 50) -- and may be faced with more difficult trade-offs.
If you're in this boat, it's useful to know some of the best reasons not to max out your 401(k) in 2021.
If your employer offers an unnecessarily expensive retirement plan, you might consider contributing up to the match amount and diverting excess funds to other investments. Some plans can come with high administrative fees and a menu of pricy mutual funds; be careful not to overcommit to these plans if you have better options.
Source Fool.com
