“A 401(k) plan allows you to save money and lower your taxes,” said Paul Walker, author of “A Money Book Anyone Can Read.” When you contribute to a traditional 401(k), those contributions lower your taxable income for the year. Although you’ll have to pay taxes on the withdrawal...
the maximum amount that you can contribute to a 401(k) plan is $20,500, or $27,000 if you’re age 50 or older thanks to the $6,500 catch-up contribution.1For 2023, you can contribute up to $22,500 to a 401(k) plan, and up to $30,000 if you are age 50 or older since...