Does your employer offer a 401(k) plan? If so, contributing to it is a wise way to build a substantial nest egg. If you’re not already contributing the maximum allowed, consider increasing the amount. With a 401(k), an employee elects to have a certain amount of pay deferred and contributed by an employer on his or her behalf to the plan. The contribution limit for 2023 is $22,500. Employees age 50 and older by year end are also permitted to make additional “catch-up” contributions of $7,500 in 2023, for a total limit of $30,000. The amounts are up quite a bit from 2022 due to inflation. In 2022, you could contribute $20,500 with a $6,500 catch-up contribution for those age 50 and older.
