The Unfortunate Truth About Maxing Out Your 401(k)
Nearly half of older adults say their biggest financial fear is outliving their retirement savings. Maxing out your 401(k) is an obvious way to reduce that risk. In 2023, the 401(k) contribution limit for workers younger than 50 is $22,500. Those who are 50 and older can contribute $30,000 thanks to catch-up contribution.
There's a big problem with maxing out your 401(k), though: You probably have a lot of financial goals that you want to accomplish between now and retirement. But if you don't earn a top salary, funding your 401(k) to the limit could mean you don't have money left for your other goals.
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Source Fool.com
