Avoiding Common Retirement Mistakes: What Not to Do with Your 401(k) and IRA
Avoiding Common Retirement Mistakes: What Not to Do with Your 401(k) and IRA When it comes to retirement planning, your 401(k) and IRA are critical tools for building long-term wealth. However, many people make common mistakes with these accounts that can undermine their financial security in retirement. Avoiding these mistakes can ensure you make the most of your retirement savings. Here are some key pitfalls to watch out for with your 401(k) and IRA. Failing to Contribute Enough One of the most common mistakes is not contributing enough to your retirement accounts. Many employers offer a 401(k) match, which is essentially free money. Not taking full advantage of the match means leaving money on the table. Ideally, you should aim to contribute enough to your 401(k) to get the full employer match. For IRAs, while there’s no match, you should still contribute the maximum allowed ($6,500 per year in 2024, or $7,500 if you're 50 or older) to maximize your tax-advantaged savings. Not D...