Should you max out a 401(k)?

Maxing out a 401 (k) isn't the best choice for everyone, even if you can afford it. Here are four things to consider first. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.

What does maxing out a 401(k) mean?

Maxing out a retirement account contribution means that you've contributed or deposited the maximum amount that's allowed to an individual retirement account (IRA) or a defined contribution plan, such as a 401 (k). If you're under the age of 50, the maximum amount that you can contribute to a 401 (k) is $22,500 in 2023 and $23,000 in 2024.

Can I invest in a 401(k) after maxing out my 401 (k)?

You can invest in these accounts after maxing out your 401 (k) if you are eligible for them.