The theme this week on the One Minute Retirement Tip podcast is How to get the most out of your 401k plan. You may be saving and getting the match, but are you fully taking advantage of all the amazing benefits that your 401k has to offer you? 

Today, I’m talking about maximizing your 401k contributions. Occasionally, I come across people in the 401k plan who think they’re maxing out, but they aren’t. I see a 401k flat dollar contribution amount of $16,500, and I have to gently break it to them that they were maxing out...10 years ago. 

Since the 401k maximum increases about every 1-2 years, if you’re one of those power savers who maxes out your 401k contribution, it’s important that you adjust your contribution and verify that you’re on track to max out in the current year. 

In 2021, the maximum contribution is $19,500. If you’re over 50 years old, you can set aside an additional $6,500 as a catch up, so if you can afford to max out, be sure you take advantage of the maximum allowable contribution in 2021. 

That’s it for today, but before you go, if you missed yesterday’s episode, you missed the exciting upcoming virtual event I’m hosting with guest speaker, Chad Morganlander, on investing in uncertain times. For more info and to grab your free spot, head over to truenorthra.com/tickets. 

Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance