Beginning in 2024, workers will be allowed to contribute up to $23,000 to their 401(k), an increase of $500 from this year. The increase applies to other retirement savings accounts, including the 403(b) plan, most 457 plans and the federal government's Thrift Savings Plan.

you are viewing a single comment's thread
view the rest of the comments
[–] -1 points 2 years ago (1 child)

It's not necessarily about how much you make; it's about how much you spend. For example, if you make the median US household income ($74,580) but spend at the poverty line ($30,000 assuming a family of 4), then you've got $44,580 to save/invest -- which is enough to max out one wage earner's 401k ($23,000), IRA ($7,000), spousal IRA ($7,000), and HSA ($8,300) and have $280 left over to put in taxable investments. (In case you think I forgot to account for taxes, note that all these tax-deferred investments would do just that: lower your AGI so much that your current-year tax liability would probably be wiped out completely.)

The trick is living way, way, way below your means. This blog has good advice on how to accomplish that.

  • source
  • parent
  • hideshow 2 child comments
  • [–] [S] 0 points 2 years ago (1 child)

    Let me stop you right there because I don't make anything near the median income.

  • source
  • parent
  • hideshow 2 child comments
  • [–] -2 points 2 years ago (1 child)

    So? You asked about "how many people" can afford it. I've proven that 50% of American households could afford it if they really wanted to, and the fact that that 50% apparently doesn't include you is immaterial.

  • source
  • parent
  • hideshow 2 child comments
  • [–] [S] -1 points 2 years ago

    America is an enormous country. Not all states, regions, and counties are the same. I make close to, but not quite, the median income for my state. And I work two jobs. One full time and another part time. That may be immaterial to you but it isn't for a lot of people.

  • source
  • parent