How can I contribute to a 401(k)?

How can I contribute to a 401(k)?

You can contribute to a 401(k) through your employer's plan. Typically, you can set a percentage of your salary to be deducted and deposited into your 401(k) account.

What is the maximum contribution limit for 2023?

For 2023, the maximum contribution limit for a 401(k) is $22,500. If you're 50 or older, you can contribute an additional $7,500 as a catch-up contribution.

Are there any tax benefits to contributing?

Yes, contributions to a traditional 401(k) are made pre-tax, which can lower your taxable income. Additionally, your investments grow tax-deferred until withdrawal.

What happens if I leave my job?

If you leave your job, you can typically roll over your 401(k) into an IRA or your new employer's plan, or you can cash it out, though that may incur taxes and penalties.