Reported 11 months ago
Many aim to max out their 401(k) for retirement, believing it's a wise move, but there are drawbacks to consider. While contributing to a 401(k) offers advantages like reducing taxable income and employer matches, maxing it out may not be the best strategy for everyone. Limitations in investment options and penalties for early withdrawals make IRAs a more flexible choice. The ideal approach may be to contribute up to your employer's match, prioritize maxing out an IRA, and then increase 401(k) contributions. Ultimately, the key is to find a balance that suits your financial situation and goals.
Source: YAHOO