Maximizing your 401(k) and other retirement accounts is essential for securing your financial future. One way to maximize your 401(k) is to contribute the maximum amount allowed by the IRS, which for 2021 is $19,500 for individuals under 50 and $26,000 for those 50 and older.

Additionally, consider taking advantage of employer matching contributions. For example, if your employer matches 50% of your contributions up to 6% of your salary, be sure to contribute at least 6% to receive the full match.

Furthermore, diversifying your retirement savings by contributing to other accounts such as IRAs or Roth IRAs can provide tax advantages and flexibility in retirement. For instance, a Roth IRA allows for tax-free withdrawals in retirement, while a traditional IRA offers tax-deferred growth.

References:

• IRS 401(k) Contribution Limits: IRS Website
• Benefits of Roth IRA: Investopedia