Only 11% of Savers With a 401(k) Are Maxing Out. Here's How to Hit That Goal.
There's a reason some savers prefer housing their retirement funds in a 401(k) over an IRA. With a 401(k), there's often (though not always) the potential for free money in the form of an employer match. And also, 401(k) plans have higher annual contribution limits than IRAs, so there's more opportunity to sock money away for retirement in a tax-advantaged fashion.
This year, 401(k) plans max out at $22,500 for savers under the age of 50 and $30,000 for those 50 and over. IRAs, by contrast, max out at $6,500 for savers under 50 and $7,500 for those 50 and older. But a recent CNBC survey found that only 11% of savers manage to max out their 401(k)s.
Image source: Getty Images.
Source Fool.com
