However, if you have a 401(k) or similar tax-advantaged retirement account through work, many experts recommend putting in at least enough to get the company match, which might be $1 for every $1 you put in (or, say, 50 cents for every $1) up to a certain amount.
“If you can put in enough to get the match, do it,” Hauer said. “Otherwise, it’s essentially free money that you leave on the table.”
The 2019 contribution limit for 401(k) plans is $19,000, with people age 50 and older allowed an extra $6,000 as a “catch-up” contribution for a total of $25,000. Remember, too, that your contributions are made pre-tax, which reduces your taxable income.
If you don’t have a workplace plan, you can look into a traditional or Roth IRAs, each of which come with different tax advantages and, for the Roth version, limits on income. The 2019 contribution limit for both is $6,000, with an extra $1,000 allowed for the 50-and-older crowd.
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