Why you should boost your 401(k) contribution rate between now and year end

If you’re not making the maximum 401(k) contribution allowed ($18,000, or, if age 50 or older, $24,000), consider increasing your contribution rate through year end. Traditional 401(k) contributions are pretax, plan assets can grow tax-deferred (you pay no income tax until you take distributions), and your employer may match some or all of your contributions pretax. Plus your paycheck will be reduced by less than the dollar amount of the contribution, because income tax isn’t withheld. Contact us to discuss the best tax and retirement-saving strategies for you.