What Are Some Tips for Retiring With a 401(k)?


Quick Answer

To retire with a 401(k) and have plenty of money, workers should save enough from their monthly pay checks to meet their employers' maximum contributions, reports USA Today. To maximize their retirement incomes without experiencing undue financial stress, savers can increase their 401(k) contributions by 1 percent each year.

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Full Answer

Starting at age 50, savers can use the catch-up provision to save more for retirement, explains USA Today. This provision raises the annual maximum contribution limit from $17,500 to over $22,000. Savers should try not to make early 401(k) withdrawals to avoid costly tax bills and penalties. As of 2016, most savers can't make penalty-free withdrawals before the age of 59.

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