How to Maximize the Higher 401(k) Contribution Limit
In 2012, you can defer taxes on an extra $500 in your 401(k)
Diligent savers will have the opportunity to tuck away extra money in their retirement plan next year. Investors will be able to contribute up to
Break it into smaller increments.
To completely max out your 401(k) and get the best possible tax benefits, you will need to save about
Remember to reset your direct deposits.
If you have direct deposit set up from your paycheck to your 401(k) and already contribute the maximum amount allowed, remember to boost the amount by
Watch out for lower limits.
Consider a Roth 401(k).
Don't be discouraged if you can't save the max.
While it's a worthy goal to max out your 401(k) contributions, most people don't save anywhere near the tax-deductible limit. Only 9 percent of Vanguard 401(k) participants hit the 401(k) limit of
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Personal Finance - How to Maximize the Higher 401(k) Contribution Limit
(c) 2011 U.S. News & World Report