In 2024, you can contribute up to $23,000 to your 401(k), or up to $30,500 if you are eligible for catch-up contributions because you're 50 or over. That's a lot of tax-advantaged contributions you can make to your plan.

It may be very tempting to sink that much money into your workplace retirement account, if you have it. After all, it's easy to sign up to have withdrawals taken from your paycheck, and you'll see your taxable income decline, so you won't owe as much to the IRS. If you're lucky, your employer will even match a portion of your contributions.

In reality, though, maxing out your 401(k) may actually not be the best financial choice. Here's the truth about why this approach to investing for retirement could end up leaving you with less money than some other alternatives.

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Source Fool.com