The Expert Podcast

• The federal government has increased the maximum contribution limits for 401(k) plans starting next year.
• The employee contribution limit jumps by $2,000, rising to $22,500 — about a 10% increase.
• This adjustment is mainly due to inflation and the rising cost of living.
• Putting more money into your retirement plan now makes sense given these changes.
• Should you max out your 401(k)?
  • It’s a tax-advantaged plan, effectively like getting free money from the government.
  • The more you contribute, the better positioned you’ll be for retirement.
  • Plan when you want to start withdrawing and how much you’ll need.
• If your employer offers a matching contribution, maxing out your 401(k) is a no-brainer — it’s free money toward your retirement!
• Knowing about the increased limits helps you adjust your paycheck deductions to maximize contributions.
• Contributing close to the new limit means investing roughly a couple thousand dollars a month or around $500 a week—great for building your retirement nest egg.