Why Retirement Savers Need to Think Twice Before Maxing Out Their 401(k)s
You may have been told that maxing out your annual contributions to a 401(k) year after year could be your ticket to a pretty sweet retirement. And there's a lot of truth in that.In 2025, the maximum allowable 401(k) contribution for workers under 50 is $23,500. For workers 50 and over, it's $31,000. And beginning this year, workers between 60 and 63 can make "super" catch-up contributions that bring their annual 401(k) limits to $34,750.Image source: Getty Images.Continue reading
You may have been told that maxing out your annual contributions to a 401(k) year after year could be your ticket to a pretty sweet retirement. And there's a lot of truth in that.
In 2025, the maximum allowable 401(k) contribution for workers under 50 is $23,500. For workers 50 and over, it's $31,000. And beginning this year, workers between 60 and 63 can make "super" catch-up contributions that bring their annual 401(k) limits to $34,750.
Image source: Getty Images.
