Maxing out your 401(k) is a financial milestone to celebrate. Not everyone can set aside $20,500 or more toward retirement in a single year. That contribution level puts you ahead of the average retirement saver and on a great path to funding the retirement you want.

Still, in some scenarios, maxing out your 401(k) can limit your financial flexibility later. Read on to learn about three of those scenarios and how to avoid them.

Your employer match works this way: For every dollar you contribute, your employer matches your contribution in a defined ratio. Commonly, the ratio is either $1 or $0.50 in match for every $1 you contribute.

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Source Fool.com