Smart Strategies for Maximum 401(k) Contributions in 2024
Saturday, 30 March 2024, 10:00
Maximizing 401(k) Contributions in 2024: 5 Smart Strategies
Saving for retirement is crucial for long-term financial security. Financial experts recommend saving 15% of your income, and here's how you can boost your 401(k) contributions:
- Double check the 401(k) contribution limits: Contribute up to $23,000 for 2024, or $30,500 if you're 50 or older.
- Make investing automatic with every paycheck: Set a fixed percentage or amount with your employer's plan.
- Get your employer match: Claim free money by maximizing your employer's contributions.
- Make extra contributions after a pay raise: Use salary increases to increase your savings rate.
- Consider maxing out your 401(k): High earners can benefit from maximizing contributions for tax advantages.
While 401(k)s are ideal for high-income individuals, those in lower tax brackets may explore other investment options like IRAs or brokerage accounts for greater flexibility.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.