 TITLE: How Much Should I Contribute to 401(k)? CONTENT: How to Get the Most out of Your 401(k)\n--------------------------------------\nWhile you can just set up your 401(k) account with your employer's default settings, you might be missing out on valuable opportunities to increase your retirement savings. Here are a few ways to maximize your 401(k) plan and increase the amount of money in your retirement account.\n*   **Take advantage of an employer match.** Many employers offer 401(k) matches that incentivize you to save by essentially giving you free money if you contribute a certain amount. Try to contribute enough to your 401(k) to get the full match. If your employer matches up to 3% of your pre-tax income, for example, make sure you put in 3%. That means you'll actually get 6% of your income for your retirement, doubling the amount of money going into your 401(k).\n*   **Boost your contribution when you get a raise.** Every time you get a raise at your job, increase the amount you contribute to your 401(k) since you won't feel the money coming out of your budget. Even if it's only 1% more of your salary, it can make a big difference over time.\n*   **Max it out.** Because of its tax benefits, there are limits to how much you can put into a 401(k) account each year. As of 2019, the IRS permits employees under age 50 to contribute up to $19,000 to their 401(k) annually. Employees over 50 are allowed an additional \"catch-up\" contribution amount of $6,000 per year to help, well, catch up on retirement savings if they're behind. The more you can set aside, the better, due to the tax benefits—so try to contribute as much as you can within the limits.\n*   **Get out of debt.** It's hard to set aside money every paycheck for retirement if you're currently bogged down with student loan debt, credit card debt or any other financial burdens. Work to reduce your debt burden so you have more income available for retirement savings. That said, be sure you're always contributing something to your 401(k).\n*   **Save to avoid a 401(k) loan or withdrawal.** While you can pull from your 401(k) before retirement in the case of an emergency, you could pay steep financial penalties for doing so, and you'll lose your tax-advantaged retirement savings. Create an emergency fund to give yourself a savings buffer so you don't have to pull from your 401(k) when a disaster strikes. END