🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 143 (from laksa059)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa143.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/","crawl_time":1775105149,"first_indexed_time":1656015734,"http_code":200,"src_unparsed":"com,cbsnews!www,\/news\/401k-plan-contribution-optimal-employer-match-solo\/ s443","src_root_hash":"10008871826360721943","history_drop_reason":null,"meta_title":"How much should you contribute to your 401(k)? - CBS News","meta_descriptions":["Make sure you're taking full advantage of your 401(k) and exploring all of your retirement options."],"attrs_boilerpipe_text":"We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.\nBy\nAly J Yale\nAly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more.\nRead Full Bio\nUpdated on:  September 19, 2022 \/ 6:49 PM EDT\n\/ CBS News\nAdd CBS News on Google\nFinding the optimal 401(k) contribution can be a boon to your retirement savings. \n\/ Getty Images\nMost employees have probably heard of or had a 401(k) or IRA, but just how much do you know about these retirement accounts?\nAn employer-sponsored\n401(k) plan\nallows you to automatically contribute to your account from each paycheck, invest in professionally-vetted funds, and, in most cases, put off income tax on that income until later in life. \n(If you're looking for a way to save for retirement beyond the traditional 401(k) there are also \nmultiple benefits to explore with a Roth IRA\n, including the option to roll over an existing 401(k) plan.)\nMany employers have a matching contribution to 401(k)s as an employee benefit as long as you put in some cash yourself. Here's how you can get the most from your 401(k) in the long haul.\nHow much should you contribute to your 401(k)?\nThe\nInternal Revenue Service\nsets the contribution limit annually. This limit varies based on your age, but for 2022, most Americans can contribute up to $20,500 across the entire year. If you're 50 or older, the limit goes up to $27,000 (this allows workers nearing retirement a catch-up contribution).\nThat is just your personal contribution limit, though. You can technically exceed these amounts -\nup to 100% of your compensation or $61,000\n, whichever is lower if your employer also contributes to the account. Some employers offer a matching contribution, meaning for each dollar you contribute to your account, they'll contribute a matching amount up to a certain threshold. \nIdeally, you'd take advantage of the IRS maximum contribution limit to your account year after year. But if that's not possible financially, start by contributing enough to max out your employer contribution. If you're not sure what that is, check with your company's benefits administrator or\nreach out to a financial adviser for guidance\n.\n\"Contribute the maximum your household budget will allow, up to the maximum annual contributions allowed by the IRS,\" says \nDaniel Milan\n, managing partner at Cornerstone Financial Services. \"At the very least, if your company offers a match, you should contribute at least the percentage required to get the maximum match, as that is free money you're leaving on the table if you don't.\"\nAccording to a \nreport\n from investment management group Vanguard, most employers with matching benefits will contribute 50 cents on the dollar for up to 6% of the employee's pay. So if you made $50,000, your employer would contribute up to $1,500 per year, provided you contributed at least $3,000 yourself (50,000 x .06). \nPay attention, though. Your company may change its matching policy from time to time, so make sure to check in annually with your plan administrator. You'll want to take full advantage of any employer contributions as long as it's financially possible.\n401(k) alternatives\nIf you're able to max out your (and your employer's) 401(k) contributions and still have disposable funds leftover, you might want to consider contributing to other accounts in addition to your 401(k), including:\nIRAs\nLife insurance\nHealth Savings Accounts\n529 plans\nIRAs\nBoth traditional and\nRoth IRAs\ncan be smart options. These allow you to\ncontribute up to $6,000 annually\n(more if you're 50 or older) and build wealth for retirement. The difference between the two lies in their tax treatment. \nWith traditional IRAs, you pay taxes upon withdrawal, while Roth IRA contributions are post-tax, meaning you pay taxes on the income first and then make the contribution. This allows you to avoid taxes when you withdraw funds later on. Both options can be beneficial, depending on your personal financial situation.\nLearn more about Roth IRAs now\n.\nLife insurance\nIf you have a spouse or dependents,\nputting extra funds toward a life insurance policy could be financially wise\n. Make sure to talk to an insurance agent if you opt for this strategy, as there are several types of policies to think about. \nHealth Savings Accounts\nWith an\nHSA\n, you can set aside pre-tax money to use toward health care costs - including things like medications, first aid supplies, health insurance deductibles, and other health-related expenses you might incur (like Covid tests, for example). \n529 plans\nA\n529 plan\nlets you build up funds for your child's future college costs. Some plans even let your child use the money for trade school and other expenses once they reach a certain age. (This varies by state, though, so check with a financial professional in your area). ","attrs_markdown":"- [Latest](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/)\n  - [U.S.](https:\/\/www.cbsnews.com\/us\/)\n  - [Iran War](https:\/\/www.cbsnews.com\/live-updates\/iran-war-trump-nato-tehran-threatens-us-tech-companies-strait-of-hormuz\/)\n  - [Artemis II Launch](https:\/\/www.cbsnews.com\/live-updates\/nasa-artemis-ii-launch\/)\n  - [World](https:\/\/www.cbsnews.com\/world\/)\n  - [Politics](https:\/\/www.cbsnews.com\/politics\/)\n  - [Entertainment](https:\/\/www.cbsnews.com\/entertainment\/)\n  - [HealthWatch](https:\/\/www.cbsnews.com\/healthwatch\/)\n  - [MoneyWatch](https:\/\/www.cbsnews.com\/moneywatch\/)\n  - [Crime](https:\/\/www.cbsnews.com\/crime\/)\n  - [Space](https:\/\/www.cbsnews.com\/space\/)\n  - [Sports](https:\/\/www.cbssports.com\/)\n  - [Brand Studio](https:\/\/www.cbsnews.com\/brandstudio\/)\n  - [The Free Press](https:\/\/www.thefp.com\/?utm_source=cbsnews&utm_medium=global_nav)\n- [Local News](https:\/\/www.cbsnews.com\/cbslocal\/)\n  - 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Promotions are subject to availability and retailer terms.\n\nBy\n\nAly J Yale\n\n[Aly J Yale](https:\/\/www.cbsnews.com\/team\/aly-yale\/)\n\nAly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more.\n\n[Read Full Bio](https:\/\/www.cbsnews.com\/team\/aly-yale\/)\n\n[Aly J Yale](https:\/\/www.cbsnews.com\/team\/aly-yale\/)\n\nUpdated on: September 19, 2022 \/ 6:49 PM EDT \/ CBS News\n\n[Add CBS News on Google](https:\/\/www.google.com\/preferences\/source?q=cbsnews.com)\n\n![401k text written on wooden block with stacked coins ](https:\/\/assets3.cbsnewsstatic.com\/hub\/i\/r\/2022\/06\/23\/84ef1740-a730-4f2d-812a-a66ef5e4de0a\/thumbnail\/620x410\/0cd6f0b4b8db69e1137ba8805bf997ff\/gettyimages-955530312.jpg)\n\nFinding the optimal 401(k) contribution can be a boon to your retirement savings.   \/ Getty Images\n\nMost employees have probably heard of or had a 401(k) or IRA, but just how much do you know about these retirement accounts?\n\nAn employer-sponsored [401(k) plan](https:\/\/www.cbsnews.com\/news\/401k-what-to-know-retirement-plan\/) allows you to automatically contribute to your account from each paycheck, invest in professionally-vetted funds, and, in most cases, put off income tax on that income until later in life.\n\n(If you're looking for a way to save for retirement beyond the traditional 401(k) there are also [multiple benefits to explore with a Roth IRA](https:\/\/secure.money.com\/pr\/kc37883da370), including the option to roll over an existing 401(k) plan.)\n\nMany employers have a matching contribution to 401(k)s as an employee benefit as long as you put in some cash yourself. Here's how you can get the most from your 401(k) in the long haul.\n\n## **How much should you contribute to your 401(k)?**\nThe [Internal Revenue Service](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) sets the contribution limit annually. This limit varies based on your age, but for 2022, most Americans can contribute up to \\$20,500 across the entire year. If you're 50 or older, the limit goes up to \\$27,000 (this allows workers nearing retirement a catch-up contribution).\n\nThat is just your personal contribution limit, though. You can technically exceed these amounts - [up to 100% of your compensation or \\$61,000](https:\/\/www.irs.gov\/retirement-plans\/operating-a-401k-plan), whichever is lower if your employer also contributes to the account. Some employers offer a matching contribution, meaning for each dollar you contribute to your account, they'll contribute a matching amount up to a certain threshold.\n\nIdeally, you'd take advantage of the IRS maximum contribution limit to your account year after year. But if that's not possible financially, start by contributing enough to max out your employer contribution. If you're not sure what that is, check with your company's benefits administrator or [reach out to a financial adviser for guidance](https:\/\/secure.money.com\/pr\/ra22fffc45c4).\n\n\"Contribute the maximum your household budget will allow, up to the maximum annual contributions allowed by the IRS,\" says [Daniel Milan](http:\/\/www.cornerstone-mi.com\/team\/daniel-milan), managing partner at Cornerstone Financial Services. \"At the very least, if your company offers a match, you should contribute at least the percentage required to get the maximum match, as that is free money you're leaving on the table if you don't.\"\n\nAccording to a [report](https:\/\/institutional.vanguard.com\/content\/dam\/inst\/vanguard-has\/insights-pdfs\/21_CIR_HAS21_HAS_FSreport.pdf) from investment management group Vanguard, most employers with matching benefits will contribute 50 cents on the dollar for up to 6% of the employee's pay. So if you made \\$50,000, your employer would contribute up to \\$1,500 per year, provided you contributed at least \\$3,000 yourself (50,000 x .06).\n\nPay attention, though. Your company may change its matching policy from time to time, so make sure to check in annually with your plan administrator. You'll want to take full advantage of any employer contributions as long as it's financially possible.\n\n## **401(k) alternatives**\nIf you're able to max out your (and your employer's) 401(k) contributions and still have disposable funds leftover, you might want to consider contributing to other accounts in addition to your 401(k), including:\n\n1. [IRAs](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#482aea48-0350-49ed-825e-cff30b189520)\n2. [Life insurance](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#306bab5c-2254-41ad-9245-b954d586a049)\n3. [Health Savings Accounts](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#7e92854f-1f4a-4d5b-905c-c4c5cfb54690)\n4. [529 plans](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#d8b78e6e-d764-453b-a7d6-b5885c722b9c)\n## **IRAs**\nBoth traditional and [Roth IRAs](https:\/\/www.cbsnews.com\/news\/roth-ira-what-is-it-how-does-it-work\/) can be smart options. These allow you to [contribute up to \\$6,000 annually](https:\/\/www.irs.gov\/retirement-plans\/traditional-and-roth-iras) (more if you're 50 or older) and build wealth for retirement. The difference between the two lies in their tax treatment.\n\nWith traditional IRAs, you pay taxes upon withdrawal, while Roth IRA contributions are post-tax, meaning you pay taxes on the income first and then make the contribution. This allows you to avoid taxes when you withdraw funds later on. Both options can be beneficial, depending on your personal financial situation. [Learn more about Roth IRAs now](https:\/\/secure.money.com\/pr\/kc37883da370).\n\n## **Life insurance**\nIf you have a spouse or dependents, [putting extra funds toward a life insurance policy could be financially wise](https:\/\/secure.money.com\/pr\/w723ab413b70). Make sure to talk to an insurance agent if you opt for this strategy, as there are several types of policies to think about.\n\n## **Health Savings Accounts**\nWith an [HSA](https:\/\/www.irs.gov\/publications\/p969), you can set aside pre-tax money to use toward health care costs - including things like medications, first aid supplies, health insurance deductibles, and other health-related expenses you might incur (like Covid tests, for example).\n\n## **529 plans**\nA [529 plan](https:\/\/www.irs.gov\/taxtopics\/tc313) lets you build up funds for your child's future college costs. Some plans even let your child use the money for trade school and other expenses once they reach a certain age. (This varies by state, though, so check with a financial professional in your area).\n\n© 2022 CBS Interactive Inc. All Rights Reserved.\n\n- [What happens after you miss a tax deadline? ![ ](https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2026\/03\/30\/1e7bb93f-4067-40a8-a21d-1b4d83f3c3c7\/thumbnail\/1200x630\/701f184a6e992cb7dfd7563274eebacb\/gettyimages-2198672554.jpg)](https:\/\/www.cbsnews.com\/news\/what-happens-missed-tax-deadline\/?intcid=CNR-01-0623)\n- [How much of your paycheck will you actually lose to wage garnishment? ![ ](https:\/\/assets1.cbsnewsstatic.com\/hub\/i\/r\/2026\/04\/01\/6ef389db-03c8-41ef-8f45-2874d0f71421\/thumbnail\/1200x630\/a60ca70860291a70fc72f2960af6e376\/gettyimages-1143528859.jpg)](https:\/\/www.cbsnews.com\/news\/how-wage-garnishment-impacts-paychecks\/?intcid=CNR-01-0623)\n- [Attleboro mayor announces plan to keep Capron Park Zoo open ![ ](https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2026\/04\/02\/4d3555bd-56ba-47e1-91e5-fdcd9f5113b9\/thumbnail\/1200x630\/fe21f42b1de365c1efd1c51da9e2b618\/capron2.jpg)](https:\/\/www.cbsnews.com\/boston\/news\/attleboro-capron-park-zoo-mayor\/?intcid=CNR-01-0623)\n- [A Dark Money Group That Backed Kamala Harris Faces Questions over a Giant Donation ![ ](https:\/\/substackcdn.com\/image\/fetch\/%24s_!hUer!,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3cd92971-5765-463e-9f68-55a7249857f8_3428x2292.jpeg)](https:\/\/www.thefp.com\/p\/a-dark-money-group-that-backed-kamala?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=right_rail)\n\nFeatured\n\n[Iran War Coverage](https:\/\/www.cbsnews.com\/us-iran-tensions\/)\n\n[Artemis II Launch](https:\/\/www.cbsnews.com\/live-updates\/nasa-artemis-ii-launch\/)\n\n[Men's March Madness Schedule](https:\/\/www.cbssports.com\/college-basketball\/news\/final-four-2026-tv-schedule-channels-announcers-where-to-watch-march-madness-ncaa-tournament\/)\n\n[Women's March Madness Schedule](https:\/\/www.cbssports.com\/womens-college-basketball\/news\/womens-march-madness-schedule-bracket-2026\/)\n\nFollow Us On\n\n[YouTube](https:\/\/www.youtube.com\/CBSNews\/)\n\n[Facebook](https:\/\/www.facebook.com\/CBSNews\/)\n\n[Instagram](https:\/\/instagram.com\/cbsnews\/)\n\n[X](https:\/\/x.com\/CBSNews\/)\n\nPrivacy\n\n[Privacy Policy](https:\/\/www.viacomcbsprivacy.com\/policy)\n\n[California Notice](https:\/\/privacy.paramount.com\/en\/policy#additional-information-us-states)\n\n[Your Privacy Choices](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#onetrust-pc-sdk)\n\n[Terms of Use](https:\/\/legal.paramount.com\/us\/en\/cbsi\/terms-of-use)\n\nMore from CBS News\n\n[Newsletters](https:\/\/www.cbsnews.com\/newsletters\/)\n\n[Podcasts](https:\/\/www.cbsnews.com\/podcasts\/)\n\n[Download Our App](https:\/\/www.cbsnews.com\/app\/)\n\n[Brand Studio](https:\/\/www.cbsnews.com\/brandstudio\/)\n\n[Sitemap](https:\/\/www.cbsnews.com\/sitemap\/)\n\nCompany\n\n[About Paramount](https:\/\/www.paramount.com\/about\/)\n\n[Advertise With Paramount](https:\/\/www.paramount.com\/about\/businesses\/advertising)\n\n[Join Our Talent Community](https:\/\/pages.beamery.com\/paramount\/page\/cbsnewsstations)\n\n[Help](https:\/\/help.cbsnews.com\/s\/)\n\n[Feedback](https:\/\/www.cbs.com\/showfeedback\/)\n\n[Contact the Ombudsman](https:\/\/ombudsman.cbsnews.com\/)\n\nCopyright ©2026 CBS Interactive Inc. All rights reserved.\n\nView CBS News In\n\nCBS News App\n\n[Open](https:\/\/www.cbsnews.com\/app\/?ftag=CNM-16-10abd6g&url=https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/)\n\nChrome\n\nSafari\n\n[Continue](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#app)","attrs_readable_markdown":"We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.\n\nBy\n\n[Aly J Yale](https:\/\/www.cbsnews.com\/team\/aly-yale\/)\n\nAly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more.\n\n[Read Full Bio](https:\/\/www.cbsnews.com\/team\/aly-yale\/)\n\nUpdated on: September 19, 2022 \/ 6:49 PM EDT \/ CBS News\n\n[Add CBS News on Google](https:\/\/www.google.com\/preferences\/source?q=cbsnews.com)\n\n![401k text written on wooden block with stacked coins ](https:\/\/assets3.cbsnewsstatic.com\/hub\/i\/r\/2022\/06\/23\/84ef1740-a730-4f2d-812a-a66ef5e4de0a\/thumbnail\/620x410\/0cd6f0b4b8db69e1137ba8805bf997ff\/gettyimages-955530312.jpg)\n\nFinding the optimal 401(k) contribution can be a boon to your retirement savings.   \/ Getty Images\n\nMost employees have probably heard of or had a 401(k) or IRA, but just how much do you know about these retirement accounts?\n\nAn employer-sponsored [401(k) plan](https:\/\/www.cbsnews.com\/news\/401k-what-to-know-retirement-plan\/) allows you to automatically contribute to your account from each paycheck, invest in professionally-vetted funds, and, in most cases, put off income tax on that income until later in life.\n\n(If you're looking for a way to save for retirement beyond the traditional 401(k) there are also [multiple benefits to explore with a Roth IRA](https:\/\/secure.money.com\/pr\/kc37883da370), including the option to roll over an existing 401(k) plan.)\n\nMany employers have a matching contribution to 401(k)s as an employee benefit as long as you put in some cash yourself. Here's how you can get the most from your 401(k) in the long haul.\n\n## **How much should you contribute to your 401(k)?**\nThe [Internal Revenue Service](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) sets the contribution limit annually. This limit varies based on your age, but for 2022, most Americans can contribute up to \\$20,500 across the entire year. If you're 50 or older, the limit goes up to \\$27,000 (this allows workers nearing retirement a catch-up contribution).\n\nThat is just your personal contribution limit, though. You can technically exceed these amounts - [up to 100% of your compensation or \\$61,000](https:\/\/www.irs.gov\/retirement-plans\/operating-a-401k-plan), whichever is lower if your employer also contributes to the account. Some employers offer a matching contribution, meaning for each dollar you contribute to your account, they'll contribute a matching amount up to a certain threshold.\n\nIdeally, you'd take advantage of the IRS maximum contribution limit to your account year after year. But if that's not possible financially, start by contributing enough to max out your employer contribution. If you're not sure what that is, check with your company's benefits administrator or [reach out to a financial adviser for guidance](https:\/\/secure.money.com\/pr\/ra22fffc45c4).\n\n\"Contribute the maximum your household budget will allow, up to the maximum annual contributions allowed by the IRS,\" says [Daniel Milan](http:\/\/www.cornerstone-mi.com\/team\/daniel-milan), managing partner at Cornerstone Financial Services. \"At the very least, if your company offers a match, you should contribute at least the percentage required to get the maximum match, as that is free money you're leaving on the table if you don't.\"\n\nAccording to a [report](https:\/\/institutional.vanguard.com\/content\/dam\/inst\/vanguard-has\/insights-pdfs\/21_CIR_HAS21_HAS_FSreport.pdf) from investment management group Vanguard, most employers with matching benefits will contribute 50 cents on the dollar for up to 6% of the employee's pay. So if you made \\$50,000, your employer would contribute up to \\$1,500 per year, provided you contributed at least \\$3,000 yourself (50,000 x .06).\n\nPay attention, though. Your company may change its matching policy from time to time, so make sure to check in annually with your plan administrator. You'll want to take full advantage of any employer contributions as long as it's financially possible.\n\n## **401(k) alternatives**\nIf you're able to max out your (and your employer's) 401(k) contributions and still have disposable funds leftover, you might want to consider contributing to other accounts in addition to your 401(k), including:\n\n1. [IRAs](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#482aea48-0350-49ed-825e-cff30b189520)\n2. [Life insurance](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#306bab5c-2254-41ad-9245-b954d586a049)\n3. [Health Savings Accounts](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#7e92854f-1f4a-4d5b-905c-c4c5cfb54690)\n4. [529 plans](https:\/\/www.cbsnews.com\/news\/401k-plan-contribution-optimal-employer-match-solo\/#d8b78e6e-d764-453b-a7d6-b5885c722b9c)\n## **IRAs**\nBoth traditional and [Roth IRAs](https:\/\/www.cbsnews.com\/news\/roth-ira-what-is-it-how-does-it-work\/) can be smart options. These allow you to [contribute up to \\$6,000 annually](https:\/\/www.irs.gov\/retirement-plans\/traditional-and-roth-iras) (more if you're 50 or older) and build wealth for retirement. The difference between the two lies in their tax treatment.\n\nWith traditional IRAs, you pay taxes upon withdrawal, while Roth IRA contributions are post-tax, meaning you pay taxes on the income first and then make the contribution. This allows you to avoid taxes when you withdraw funds later on. Both options can be beneficial, depending on your personal financial situation. [Learn more about Roth IRAs now](https:\/\/secure.money.com\/pr\/kc37883da370).\n\n## **Life insurance**\nIf you have a spouse or dependents, [putting extra funds toward a life insurance policy could be financially wise](https:\/\/secure.money.com\/pr\/w723ab413b70). Make sure to talk to an insurance agent if you opt for this strategy, as there are several types of policies to think about.\n\n## **Health Savings Accounts**\nWith an [HSA](https:\/\/www.irs.gov\/publications\/p969), you can set aside pre-tax money to use toward health care costs - including things like medications, first aid supplies, health insurance deductibles, and other health-related expenses you might incur (like Covid tests, for example).\n\n## **529 plans**\nA [529 plan](https:\/\/www.irs.gov\/taxtopics\/tc313) lets you build up funds for your child's future college costs. Some plans even let your child use the money for trade school and other expenses once they reach a certain age. (This varies by state, though, so check with a financial professional in your area).","meta_canonical":null}

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Meta Title	How much should you contribute to your 401(k)? - CBS News
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Boilerpipe Text	We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. By Aly J Yale Aly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more. Read Full Bio Updated on: September 19, 2022 / 6:49 PM EDT / CBS News Add CBS News on Google Finding the optimal 401(k) contribution can be a boon to your retirement savings. / Getty Images Most employees have probably heard of or had a 401(k) or IRA, but just how much do you know about these retirement accounts? An employer-sponsored 401(k) plan allows you to automatically contribute to your account from each paycheck, invest in professionally-vetted funds, and, in most cases, put off income tax on that income until later in life. (If you're looking for a way to save for retirement beyond the traditional 401(k) there are also multiple benefits to explore with a Roth IRA , including the option to roll over an existing 401(k) plan.) Many employers have a matching contribution to 401(k)s as an employee benefit as long as you put in some cash yourself. Here's how you can get the most from your 401(k) in the long haul. How much should you contribute to your 401(k)? The Internal Revenue Service sets the contribution limit annually. This limit varies based on your age, but for 2022, most Americans can contribute up to $20,500 across the entire year. If you're 50 or older, the limit goes up to $27,000 (this allows workers nearing retirement a catch-up contribution). That is just your personal contribution limit, though. You can technically exceed these amounts - up to 100% of your compensation or $61,000 , whichever is lower if your employer also contributes to the account. Some employers offer a matching contribution, meaning for each dollar you contribute to your account, they'll contribute a matching amount up to a certain threshold. Ideally, you'd take advantage of the IRS maximum contribution limit to your account year after year. But if that's not possible financially, start by contributing enough to max out your employer contribution. If you're not sure what that is, check with your company's benefits administrator or reach out to a financial adviser for guidance . "Contribute the maximum your household budget will allow, up to the maximum annual contributions allowed by the IRS," says Daniel Milan , managing partner at Cornerstone Financial Services. "At the very least, if your company offers a match, you should contribute at least the percentage required to get the maximum match, as that is free money you're leaving on the table if you don't." According to a report from investment management group Vanguard, most employers with matching benefits will contribute 50 cents on the dollar for up to 6% of the employee's pay. So if you made $50,000, your employer would contribute up to $1,500 per year, provided you contributed at least $3,000 yourself (50,000 x .06). Pay attention, though. Your company may change its matching policy from time to time, so make sure to check in annually with your plan administrator. You'll want to take full advantage of any employer contributions as long as it's financially possible. 401(k) alternatives If you're able to max out your (and your employer's) 401(k) contributions and still have disposable funds leftover, you might want to consider contributing to other accounts in addition to your 401(k), including: IRAs Life insurance Health Savings Accounts 529 plans IRAs Both traditional and Roth IRAs can be smart options. These allow you to contribute up to $6,000 annually (more if you're 50 or older) and build wealth for retirement. The difference between the two lies in their tax treatment. With traditional IRAs, you pay taxes upon withdrawal, while Roth IRA contributions are post-tax, meaning you pay taxes on the income first and then make the contribution. This allows you to avoid taxes when you withdraw funds later on. Both options can be beneficial, depending on your personal financial situation. Learn more about Roth IRAs now . Life insurance If you have a spouse or dependents, putting extra funds toward a life insurance policy could be financially wise . Make sure to talk to an insurance agent if you opt for this strategy, as there are several types of policies to think about. Health Savings Accounts With an HSA , you can set aside pre-tax money to use toward health care costs - including things like medications, first aid supplies, health insurance deductibles, and other health-related expenses you might incur (like Covid tests, for example). 529 plans A 529 plan lets you build up funds for your child's future college costs. Some plans even let your child use the money for trade school and other expenses once they reach a certain age. (This varies by state, though, so check with a financial professional in your area).
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We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. By Aly J Yale [Aly J Yale](https://www.cbsnews.com/team/aly-yale/) Aly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more. [Read Full Bio](https://www.cbsnews.com/team/aly-yale/) [Aly J Yale](https://www.cbsnews.com/team/aly-yale/) Updated on: September 19, 2022 / 6:49 PM EDT / CBS News [Add CBS News on Google](https://www.google.com/preferences/source?q=cbsnews.com) ![401k text written on wooden block with stacked coins ](https://assets3.cbsnewsstatic.com/hub/i/r/2022/06/23/84ef1740-a730-4f2d-812a-a66ef5e4de0a/thumbnail/620x410/0cd6f0b4b8db69e1137ba8805bf997ff/gettyimages-955530312.jpg) Finding the optimal 401(k) contribution can be a boon to your retirement savings. / Getty Images Most employees have probably heard of or had a 401(k) or IRA, but just how much do you know about these retirement accounts? An employer-sponsored [401(k) plan](https://www.cbsnews.com/news/401k-what-to-know-retirement-plan/) allows you to automatically contribute to your account from each paycheck, invest in professionally-vetted funds, and, in most cases, put off income tax on that income until later in life. (If you're looking for a way to save for retirement beyond the traditional 401(k) there are also [multiple benefits to explore with a Roth IRA](https://secure.money.com/pr/kc37883da370), including the option to roll over an existing 401(k) plan.) Many employers have a matching contribution to 401(k)s as an employee benefit as long as you put in some cash yourself. Here's how you can get the most from your 401(k) in the long haul. ## How much should you contribute to your 401(k)? The [Internal Revenue Service](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) sets the contribution limit annually. This limit varies based on your age, but for 2022, most Americans can contribute up to \$20,500 across the entire year. If you're 50 or older, the limit goes up to \$27,000 (this allows workers nearing retirement a catch-up contribution). That is just your personal contribution limit, though. You can technically exceed these amounts - [up to 100% of your compensation or \$61,000](https://www.irs.gov/retirement-plans/operating-a-401k-plan), whichever is lower if your employer also contributes to the account. Some employers offer a matching contribution, meaning for each dollar you contribute to your account, they'll contribute a matching amount up to a certain threshold. Ideally, you'd take advantage of the IRS maximum contribution limit to your account year after year. But if that's not possible financially, start by contributing enough to max out your employer contribution. If you're not sure what that is, check with your company's benefits administrator or [reach out to a financial adviser for guidance](https://secure.money.com/pr/ra22fffc45c4). "Contribute the maximum your household budget will allow, up to the maximum annual contributions allowed by the IRS," says [Daniel Milan](http://www.cornerstone-mi.com/team/daniel-milan), managing partner at Cornerstone Financial Services. "At the very least, if your company offers a match, you should contribute at least the percentage required to get the maximum match, as that is free money you're leaving on the table if you don't." According to a [report](https://institutional.vanguard.com/content/dam/inst/vanguard-has/insights-pdfs/21_CIR_HAS21_HAS_FSreport.pdf) from investment management group Vanguard, most employers with matching benefits will contribute 50 cents on the dollar for up to 6% of the employee's pay. So if you made \$50,000, your employer would contribute up to \$1,500 per year, provided you contributed at least \$3,000 yourself (50,000 x .06). Pay attention, though. Your company may change its matching policy from time to time, so make sure to check in annually with your plan administrator. You'll want to take full advantage of any employer contributions as long as it's financially possible. ## 401(k) alternatives If you're able to max out your (and your employer's) 401(k) contributions and still have disposable funds leftover, you might want to consider contributing to other accounts in addition to your 401(k), including: 1. [IRAs](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#482aea48-0350-49ed-825e-cff30b189520) 2. [Life insurance](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#306bab5c-2254-41ad-9245-b954d586a049) 3. [Health Savings Accounts](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#7e92854f-1f4a-4d5b-905c-c4c5cfb54690) 4. [529 plans](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#d8b78e6e-d764-453b-a7d6-b5885c722b9c) ## IRAs Both traditional and [Roth IRAs](https://www.cbsnews.com/news/roth-ira-what-is-it-how-does-it-work/) can be smart options. These allow you to [contribute up to \$6,000 annually](https://www.irs.gov/retirement-plans/traditional-and-roth-iras) (more if you're 50 or older) and build wealth for retirement. The difference between the two lies in their tax treatment. With traditional IRAs, you pay taxes upon withdrawal, while Roth IRA contributions are post-tax, meaning you pay taxes on the income first and then make the contribution. This allows you to avoid taxes when you withdraw funds later on. Both options can be beneficial, depending on your personal financial situation. [Learn more about Roth IRAs now](https://secure.money.com/pr/kc37883da370). ## Life insurance If you have a spouse or dependents, [putting extra funds toward a life insurance policy could be financially wise](https://secure.money.com/pr/w723ab413b70). Make sure to talk to an insurance agent if you opt for this strategy, as there are several types of policies to think about. ## Health Savings Accounts With an [HSA](https://www.irs.gov/publications/p969), you can set aside pre-tax money to use toward health care costs - including things like medications, first aid supplies, health insurance deductibles, and other health-related expenses you might incur (like Covid tests, for example). ## 529 plans A [529 plan](https://www.irs.gov/taxtopics/tc313) lets you build up funds for your child's future college costs. Some plans even let your child use the money for trade school and other expenses once they reach a certain age. (This varies by state, though, so check with a financial professional in your area). © 2022 CBS Interactive Inc. 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Readable Markdown	We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. By [Aly J Yale](https://www.cbsnews.com/team/aly-yale/) Aly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more. [Read Full Bio](https://www.cbsnews.com/team/aly-yale/) Updated on: September 19, 2022 / 6:49 PM EDT / CBS News [Add CBS News on Google](https://www.google.com/preferences/source?q=cbsnews.com) ![401k text written on wooden block with stacked coins ](https://assets3.cbsnewsstatic.com/hub/i/r/2022/06/23/84ef1740-a730-4f2d-812a-a66ef5e4de0a/thumbnail/620x410/0cd6f0b4b8db69e1137ba8805bf997ff/gettyimages-955530312.jpg) Finding the optimal 401(k) contribution can be a boon to your retirement savings. / Getty Images Most employees have probably heard of or had a 401(k) or IRA, but just how much do you know about these retirement accounts? An employer-sponsored [401(k) plan](https://www.cbsnews.com/news/401k-what-to-know-retirement-plan/) allows you to automatically contribute to your account from each paycheck, invest in professionally-vetted funds, and, in most cases, put off income tax on that income until later in life. (If you're looking for a way to save for retirement beyond the traditional 401(k) there are also [multiple benefits to explore with a Roth IRA](https://secure.money.com/pr/kc37883da370), including the option to roll over an existing 401(k) plan.) Many employers have a matching contribution to 401(k)s as an employee benefit as long as you put in some cash yourself. Here's how you can get the most from your 401(k) in the long haul. ## How much should you contribute to your 401(k)? The [Internal Revenue Service](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) sets the contribution limit annually. This limit varies based on your age, but for 2022, most Americans can contribute up to \$20,500 across the entire year. If you're 50 or older, the limit goes up to \$27,000 (this allows workers nearing retirement a catch-up contribution). That is just your personal contribution limit, though. You can technically exceed these amounts - [up to 100% of your compensation or \$61,000](https://www.irs.gov/retirement-plans/operating-a-401k-plan), whichever is lower if your employer also contributes to the account. Some employers offer a matching contribution, meaning for each dollar you contribute to your account, they'll contribute a matching amount up to a certain threshold. Ideally, you'd take advantage of the IRS maximum contribution limit to your account year after year. But if that's not possible financially, start by contributing enough to max out your employer contribution. If you're not sure what that is, check with your company's benefits administrator or [reach out to a financial adviser for guidance](https://secure.money.com/pr/ra22fffc45c4). "Contribute the maximum your household budget will allow, up to the maximum annual contributions allowed by the IRS," says [Daniel Milan](http://www.cornerstone-mi.com/team/daniel-milan), managing partner at Cornerstone Financial Services. "At the very least, if your company offers a match, you should contribute at least the percentage required to get the maximum match, as that is free money you're leaving on the table if you don't." According to a [report](https://institutional.vanguard.com/content/dam/inst/vanguard-has/insights-pdfs/21_CIR_HAS21_HAS_FSreport.pdf) from investment management group Vanguard, most employers with matching benefits will contribute 50 cents on the dollar for up to 6% of the employee's pay. So if you made \$50,000, your employer would contribute up to \$1,500 per year, provided you contributed at least \$3,000 yourself (50,000 x .06). Pay attention, though. Your company may change its matching policy from time to time, so make sure to check in annually with your plan administrator. You'll want to take full advantage of any employer contributions as long as it's financially possible. ## 401(k) alternatives If you're able to max out your (and your employer's) 401(k) contributions and still have disposable funds leftover, you might want to consider contributing to other accounts in addition to your 401(k), including: 1. [IRAs](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#482aea48-0350-49ed-825e-cff30b189520) 2. [Life insurance](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#306bab5c-2254-41ad-9245-b954d586a049) 3. [Health Savings Accounts](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#7e92854f-1f4a-4d5b-905c-c4c5cfb54690) 4. [529 plans](https://www.cbsnews.com/news/401k-plan-contribution-optimal-employer-match-solo/#d8b78e6e-d764-453b-a7d6-b5885c722b9c) ## IRAs Both traditional and [Roth IRAs](https://www.cbsnews.com/news/roth-ira-what-is-it-how-does-it-work/) can be smart options. These allow you to [contribute up to \$6,000 annually](https://www.irs.gov/retirement-plans/traditional-and-roth-iras) (more if you're 50 or older) and build wealth for retirement. The difference between the two lies in their tax treatment. With traditional IRAs, you pay taxes upon withdrawal, while Roth IRA contributions are post-tax, meaning you pay taxes on the income first and then make the contribution. This allows you to avoid taxes when you withdraw funds later on. Both options can be beneficial, depending on your personal financial situation. [Learn more about Roth IRAs now](https://secure.money.com/pr/kc37883da370). ## Life insurance If you have a spouse or dependents, [putting extra funds toward a life insurance policy could be financially wise](https://secure.money.com/pr/w723ab413b70). Make sure to talk to an insurance agent if you opt for this strategy, as there are several types of policies to think about. ## Health Savings Accounts With an [HSA](https://www.irs.gov/publications/p969), you can set aside pre-tax money to use toward health care costs - including things like medications, first aid supplies, health insurance deductibles, and other health-related expenses you might incur (like Covid tests, for example). ## 529 plans A [529 plan](https://www.irs.gov/taxtopics/tc313) lets you build up funds for your child's future college costs. Some plans even let your child use the money for trade school and other expenses once they reach a certain age. (This varies by state, though, so check with a financial professional in your area).
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