Maxing out a 401(k) may not be feasible for most due to income limitations

From Yahoo Finance: 2025-04-05 10:05:00

A 401(k) is a popular retirement account with great tax benefits. But maxing it out may not be feasible for most people due to income limitations. While employer matches are crucial, focusing on maxing out an IRA could provide more flexibility and cost savings in the long run.

IRAs offer investment and withdrawal flexibility lacking in 401(k)s. They have lower contribution limits but fewer fees, making them a good supplement to a 401(k). By balancing contributions to both accounts, you can maximize your retirement savings while maintaining financial stability.

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