Don’t Let This Retirement Savings Misconception Stop You From Maxing Out Your IRA or 401(k)

There's a reason workers are often advised to try to max out their IRAs or 401(k)s: The more money you put into one of these accounts, the more retirement wealth you stand to grow. Both IRAs and 401(k) plans allow savers aged 50 and over to make catch-up contributions. For IRAs, that catch-up contribution is $1,000, and for 401(k)s, it's $6,500.