Make money work for you!

  • Home
  • Personal Finance
  • Budgeting
  • Shopping
  • Taxes

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

November 28, 2022 · Personal Finance
Work From Home, change 2023
Photo by fizkes at Shutterstock

Select low-cost funds

Each and every fund in your 401(k) plan will charge a variety of fees. No matter how your investments perform, the 401(k) fees are automatically deducted from your returns. Your plan sponsor is obliged to send you a 401(k) fee disclosure statement, that will list how much each fund you have in your 401(k) plan will cost.

You can also find out if your 401(k) plan is able to provide you with a lower-cost fund that can meet your investment needs. Selecting low-cost funds might help your retirement savings compound faster.

A close-up photo of a financial statement with an early withdrawal penalty circled in red on a kitchen table.
A hand holds a red pen over a bank statement showing a circled early withdrawal penalty charge.

Avoid penalties

Make sure you pay attention to your age when you decide on the date you’ll start withdrawing your 401(k). There are some penalties that might apply if you take money out of your 401(k) account way too soon or too late. You’ll usually be charged a 10% early withdrawal penalty if you decide to initiate a 401(k) distribution before you reach 55.

There is also a 50% penalty if you can’t take the needed minimum distribution from your 401(k) plan, and pay the income tax bill, each year after you reach 72 years old. So make sure you avoid tax penalties when you take distributions from your retirement account.

Pages: 1 2 3 4 5 6 7 8

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Latest Posts

  • Hands holding an open retirement notebook beside a steaming mug and a Social Security notice on a wooden table. Social Security Announcements in October
  • A cracked egg resting in a nest woven from financial ledger strips, beside a drafting compass and pencil. 13 Signs Your Nest Egg Was Built on Outdated Assumptions
  • Senior couple reviewing financial papers and account balances on a tablet at a wooden table. 8 Reasons Retirees Are Opening High-Yield Savings Accounts Now
  • Senior man wearing glasses reviews retirement documents at a wooden table beside a calculator and coffee mug. 8 Common Mistakes Retirees Make With Required Distributions
  • A desk calendar showing December 31 circled, beside a steaming mug, eyeglasses, and financial planning folders. 10 Retirement Tasks Worth Finishing Before December 31
  • Older couple on a wooden bench overlooking a modern mountain valley hospital complex at sunset. 10 Mountain Towns With Great Hospitals for Retirees
  • A senior woman with gray hair stands inside a modern city bus or light rail car, smiling out the window. 12 U.S. Cities With Free Public Transit for Seniors
  • Laptop showing an order return screen beside folded cardigans, a shipping box, and a return label on a table. 10 Store Return Tricks That Backfire on the Shopper
  • A senior couple sits at a wooden table, with the woman reading a retirement summary paper while the man drinks coffee. 7 Reasons Retirees Are Choosing Fixed Indexed Annuities
  • A mature man sits on a sunny terrace overlooking a hillside town, beside a steaming mug and a tablet displaying bank balances. 12 Countries Where American Retirees Can Bank Without Extra Fees

Newsletter

Get money-saving tips and personal finance advice delivered to your inbox.

Related Articles

will

11 Essential Steps To Craft a Strong Estate Plan

A woman thoughtfully reflects on her legacy while sitting at a table with her laptop…

Read More →
Older couple on a wooden bench overlooking a modern mountain valley hospital complex at sunset.

10 Mountain Towns With Great Hospitals for Retirees

Compare 10 scenic mountain towns with top-rated hospitals for retirees, featuring verified medical safety ratings,…

Read More →
Illustration of attic storage transitioning into an auction gallery displaying vintage vinyl records and board games.

7 Items From the 1970s That Are Worth a Lot of Money

Discover 7 items from the 1970s worth a fortune today, from rare Star Wars toys…

Read More →
An older couple calmly reviewing financial paperwork together at a sunlit wooden kitchen table, shot on warm 35mm film.

7 Signs Your Emergency Fund Needs a Retirement-Era Update

Discover 7 signs your emergency savings need an update for retirement to protect your portfolio…

Read More →
social security

Social Security Could Slash Benefits by 2035 If No Action is Taken!

A pensive man gazes out a window, holding a mug while contemplating the future safety…

Read More →
Eliminating Income Tax

Trump Eliminating Income Taxes? These 10 States Won’t Like It!

A woman checks a price tag in a boutique, illustrating how eliminating income taxes could…

Read More →
An older woman sits at a kitchen table writing in a ledger surrounded by receipts and a steaming mug.

Latest Inflation Data Drives Down 2027 Social Security COLA Forecast

Cooling inflation has reduced the projected 2027 Social Security COLA to 3.6%. Learn how this…

Read More →
Editorial illustration of a smartphone screen showing login security alongside a physical ID card with a gold star.

Social Security Identity Requirements in 2027: What Changes

Learn how 2027 Social Security identity rules, REAL ID mandates, and Login.gov requirements protect your…

Read More →
pool

Pool Regret Is Real! 7 Reasons Not to Invest in One

A stressed man sits with his head in his hands, overwhelmed by the mounting costs…

Read More →
The Money Place

Make money work for you!

Inedit Agency S.R.L.
Bucharest, Romania

contact@ineditagency.com

Trust & Legal

  • Contact
  • Editorial Policy
  • Advertiser Disclosure
  • FAQ
  • Subscribe
  • Unsubscribe
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • Do not sell my personal information
  • Request to Know
  • Request to Delete
  • CA Private Policy

Categories

  • Budgeting
  • Personal Finance
  • Shopping
  • Taxes

© 2026 The Money Place. All rights reserved.