Beginning in 2024, workers will be allowed to contribute up to $23,000 to their 401(k), an increase of $500 from this year. The increase applies to other retirement savings accounts, including the 403(b) plan, most 457 plans and the federal government’s Thrift Savings Plan.
I have maxed out retirement since my first year of working out of college.
It hurt for a while to do, but it was worth it.
Software engineering background.
Max 401K and IRA. Roth back door a portion of the total due to future taxation and Roth benefits in early withdrawals.
I expect to be disabled before I hit retirement age due to a genetic disease, so I am pressed to shove as much as I can into savings in order to survive the medical costs and early loss of income.
I’m sorry to hear about your medical condition. That’s a rough hand to have been delt. I’m happy for you that you’re planning ahead and I hope it goes as well as it can for you. My 401k is pretty on par for my age (in terms of a multiple of my annual income based on goggle research). I’ve been putting as much as I can in but no where even close to the limit. What’s pretty sad is most of my co-workers are only putting 5% maybe 10% away and they think that’ll be enough. I try to explain but the vast majority don’t care.
Ultimate retirement calculator.
Run the numbers.
Use conservative estimates for tax rates, spending, and inflation.
Take the end result and put it into fire calc.
If you survive 95%+ of simulations, you are solid. If not, save more yesterday.
Can’t save them all, but you can try to save yourself.