86% of 401(k) Savers Missed This Prime Opportunity in 2021
The great thing about 401(k) plans is that they come with higher annual contribution limits than IRAs. But new data reveals that most savers aren't taking advantage of them.
In 2021, only 14% of 401(k) plan participants maxed out their contributions for the year, according to recent data from Vanguard. That meant putting in $19,500 for those under age 50, or $26,000 for those 50 and over. But that also means that the bulk of savers did not max out their retirement savings. And that's a move they might regret down the line.
Hitting the annual limit on 401(k) plan contributions is no easy feat. But it pays to push yourself to max out, or to get as close as possible.
Source Fool.com
