Workers can contribute substantially more than they do
Maxing out 401(k) contributions is every employee’s dream, especially if they want a sizeable nest egg. In 2019, the maximum amount was $19,000. In 2020, the IRS has announced an increase of up to $19,500. Even those who are trying to catch up with additional contributions- seniors over the age of 50, may now add $6,500, $500 more than last year.
Do you need a reason to start taking your 401(k) seriously? How about this. If you contribute $19,500 starting now, you’ll be looking at $1.8 million for your retirement in 30 years, adjusted for inflation.
Make sure to take advantage of this increase and if your company doesn’t automatically escalate your contribution, look for other ways to save up money so you won’t miss out on a single penny come retirement!
