If your employer offers a 401(k) account, you can make contributions to the plan with pre-tax dollars. Your investments grow on a tax-deferred basis, meaning you don’t pay taxes on what you invest or its earnings until you make withdrawals in retirement.
Employers may incentivize employees to contribute to their 401(k) plans by matching a portion of their contributions, up to a percentage of their salaries. For 2022, the contribution limit for 401(k) accounts is $20,500 per year, or 100% of your compensation, whichever is less. If you are 50 or older, you can make a catchup contribution of $6,500. Any employer contributions do not count toward this limit.
Please let me know if you have any questions. I’m here to help! To your incredible FINANCIAL success! “RETIRE BEFORE YOU EXPIRE”
– SHATEKA Husser