Maxing Out Your 401(k) in 2023? You May Want to Reconsider.
Maxing out your 401(k) may seem like a no-brainer move. But it's also a tough goal for a typical worker to achieve. In 2023, you'd need to contribute $22,500 to max out your 401(k) if you're younger than 50. If you're 50 or older, you'd need to kick in an extra $7,500 catch-up contribution -- $30,000 total -- to reach the limit.
Maybe you can easily afford to max out your 401(k). Or maybe contributing these amounts would put a serious strain on your budget. Either way, maxing out your 401(k) isn't always the best option for your money. Here's what you need to consider.
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Source Fool.com
