Max Your 401k: Simple Moves to Secure Your Future
Secure Your Financial Future
You want comfort and freedom in your future. But with work, family, and city life, it’s not always clear how to achieve that. Here’s the simplest starting point.
Maximize Your Savings
The best step is to maximize your savings. If you aren’t maxing out your retirement plan, consider starting now.
2025 401k Contribution Limits
- Up to $23,500 if you are under 50.
- Up to $31,000 if you’re 50+ (includes the $7,500 catch-up).
- If your plan allows, savers aged 60–63 may contribute a larger catch-up (up to $11,250).
Heads-up for Higher Earners (2026): If you earned over $145,000 last year from the same employer, your catch-up contributions must be Roth (after-tax). Your HR/plan will guide you on how they implement this.
This may sound like a lot, but the payoff is huge.
Grow Your Funds with Care
Aim to reach your maximum without borrowing. Your contributions grow tax-deferred until you withdraw them. Most people must start RMDs at age 73. But Roth money in employer plans no longer has RMDs starting in 2024.
Pro move for busy professionals: Automate small increases (e.g., 1% per quarter) until you hit the limit.
Adjust Your Lifestyle (a little now, not a lot later)
If you think your current spending won’t allow you to maximize your 401k, consider this:
Without appropriate savings, you risk a sharp lifestyle cut later.
I believe it is better to adjust by choice today rather than by necessity tomorrow. Don't you?
What do you think?
- Are you saving enough for retirement?
- Have you seen your expected cash flows year by year?
- Do you feel confident that your investments align with your goals?