One of the nice things about 401(k) plans is that they come with very generous annual contribution limits. This allows savers to sock away a nice amount of money for retirement and, at least in the case of a traditional 401(k), shield a lot of income from near-term taxes.

But maxing out a 401(k) is a pretty tall order. As of the third quarter of 2023, U.S. workers earned a median weekly wage of $1,118. That's roughly $58,000 a year for those working 52 weeks.

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Source Fool.com