Saving in a 401(k) plan is an essential step toward a financially stable retirement because Social Security probably won't pay you nearly enough to manage all of your bills. Retiring without a nest egg of your own could set the stage for a world of financial stress.
But as the end of the year approaches, it's important to give your 401(k) a little extra attention. Here are three essential moves to make before 2022 begins.
Right now, 401(k)s max out at $19,500 for savers under 50 and $26,000 for those 50 and over. (Next year, these limits will increase by $1,000.) If you haven't yet maxed out your 401(k) for the year but doing so is a goal of yours, now's the time to act.
When you save in an IRA, you can write out a check and fund your account quickly. But 401(k) contributions are deducted from your earnings, so if you want to ramp up your savings rate before the end of the year, that's a change that will generally need to go through your payroll department.