The Expert Podcast

…For those of you with 4 0 1 K plans you'll notice that the federal government has a loud. Additional contributions to a 401k mostly based on the fact that inflation is affecting dollar amounts and budgets So what the government has done was increased. The…maximum contributions to retirement plans for next year, the employee contribution limit. We'll jump 2000 to 22,500 So it's about a 10% jump. Most of this is because of inflation and the fact that everything costs more so putting more money into a retirement plan makes sense So the question is, should you max out your 401k Well, it's a tax advantage plan It's like getting free money from the government. So of course the most you can put in the better you want to make sure that you're maxing out your capability to. save money for the future Save money for your retirement. And a 401k is a great way to do that. when you look to. Withdraw money from a 401k You want to plan at what age you're going to start doing that. And how much money you kind of need and when you're kind of need it. But in the meantime maxing out your 401k especially if you have an employer match, it's a no brainer to make sure that you're getting the most money from the government from your employer, that you can because it's free money It's like other people want to pay you to retire. So why not take them up on it but knowing that your max contributions has. Increased might be important to know So that way you can change your deductions from your paycheck. To get that extra amount. you know, 22,000 a year that's close to a couple thousand a month maybe 500 a week. If you can contribute that much that'd be fantastic for your retirement.