5 Biggest Retirement Mistakes You Will Regret Forever

4. Missing Out On Employer Retirement Plans

It is recommended that individuals sign up for their company’s 401(k) plan and contribute the maximum amount to take full advantage of any available employer match. Typically, the match is a percentage of an individual’s salary. For example, if you contribute 6% of your salary, your employer may match it with 3%.

If your employer offers a generous matching program, it presents an opportunity to earn free money. However, the Internal Revenue Service (IRS) has established a maximum limit on the total contributions to an employee’s retirement plan, including both employee and employer contributions.

As of 2023, the maximum total contribution is $66,000, with an additional catch-up contribution of $7,500 allowed for those aged 50 and over. In 2022, the total contribution limit was $61,000, with a catch-up contribution of $6,500.