401(k) in 2024 — Everything You Need to Know to Maximize Your Retirement

## The employer match: free money you can't afford to miss The employer match is the best return available in personal finance. If your employer matches 50 cents on every dollar up to 6% of salary, that's an immediate 50% return on those contributions. No stock market investment can reliably deliver that. Rule 1: Always contribute at least enough to get the full match. ## Maximizing your 401(k) **2024 limits:** - Employee contributions: $23,000 - Catch-up (50+): additional $7,500 - Total including employer: $69,000 After hitting the match, the priority order: 1. HSA (if enrolled in HDHP) — triple tax advantage 2. Max out 401(k) to $23,000 3. Roth IRA ($7,000 limit) 4. Taxable brokerage account ## The power of starting early $5,000 invested at 25 at 7% = $75,000 at 65. $5,000 invested at 35 at 7% = $38,000 at 65. The 10-year difference costs $37,000 in outcome. ## Common 401(k) mistakes 1. Not contributing enough for the full match (leaving free money behind) 2. Choosing high-fee funds (a 1% fee difference costs hundreds of thousands over 30 years) 3. Cashing out when changing jobs (taxes + 10% penalty) 4. Not increasing contributions when you get a raise