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Yeah it's basically impossible to max out 401k contributions unless you're rich or at least nibbling at the bottom edge of rich. For one thing, you probably nee

Yeah it's basically impossible to max out 401k contributions unless you're rich or at least nibbling at the bottom edge of rich. For one thing, you probably need to own the company that pays you in order to make it happen. Like, sure, I expect some very successful general contractors and such manage to do that, it's not just the stereotypical richie-rich sorts who can, but even a fairly high-paid W2 worker drone cannot, even if they have the money to, because of how the rules work. The bare minimum level of success to play that game is to have a business income—not W2 income from a company someone else owns—that's, oh, IDK, let's say about 3x household median in the US, and you'll likely need more than that unless you're also quite frugal. Which means not many can do it.

eadmund 4y ago
> Yeah it's basically impossible to max out 401k contributions unless you're rich or at least nibbling at the bottom edge of rich. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits https://www.irs.gov/retirement-plans/plan-participant-employ...: ‘The limit on employee elective deferrals (for traditional and safe harbor plans) is: $22,500 in 2023 ($20,500 in 2022, $19,500 in 2021 and 2020; and $19,000 in 2019).’ The median wage in the U.S. is under $55,000; anyone making $80,000 or more can max out his 401(k) contributions and still live an above-median lifestyle.