Ready to Max Out Your 401(k) in 2023? Here Are The Steps!

estate planning 2023
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Get a 401(k) match

If you’re unable to max out your 401(k), you should at least try to save enough to get a 401(k) match. A 401(k) match of 50 cents for each dollar you’ll save in the 401(k) plan up to 6% of pay is equal to a 50% return on your investment.

Even so, you need to be vested in the 401(k) plan, so you can keep your employer’s contributions to the plan, which might mean you have to stay several years on the job. Getting a 401(k) match might help you accumulate retirement savings faster.

Consider a Roth 401(k)

As traditional 401(k) plans let you defer paying income tax on your retirement savings, some employers provide an after-tax Roth 401(k) option. A Roth 401(k) won’t provide an immediate tax break, but you usually don’t have to pay income tax on the investment gains in the Roth 401(k) account, and withdrawals in retirement are usually tax-free.

A 401(k) match could be provided for Roth 401(k) contributions, but it might also be deposited in a traditional 401(k), so you’ll have pre- and post-tax accounts, from which you can withdraw in retirement.

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