Don’t stress about Maxing out 401ks

Don’t Stress About Maxing Out Your 401(k)

Over the last few years, I’ve read a lot of conversations in the Financial Independence community through books, podcasts, and social media where middle-income earners (often making $100,000 or less) feel discouraged because they can’t max out their 401(k) or other retirement accounts. Many people end up feeling like they’re “failing” at retirement simply because they can’t hit the maximum.

Each year, contribution limits increase. That’s great news as your income grows. But the reality is, you may not be able to reach those limits—and that’s okay.

Let me say that again: it’s okay.

Maxing out a 401(k) is a big goal. If you’re making $30,000 or $50,000 a year, saving $24,500 can feel completely unrealistic. When your income reaches $100,000, it often becomes easier —especially if your expenses are under control—but that doesn’t mean you’re doing something wrong if you’re not there yet.

The first step is simply to get the match.

If your employer offers a 401(k) match, that is your priority. Contributing enough to receive the full match is essentially free money. If that’s all you can do right now, you are already making a smart and meaningful move toward your future.

When I started my career in 2001, I was thrilled just to have access to a 401(k) for the first time. I was making about $30,000 a year, and all I could afford was the amount needed to get the employer match. At the time, the maximum contribution was $10,500, and even that felt huge to me—like something I might be able to do someday. As my income increased over time, we eventually did reach the maximum, but it didn’t happen overnight.

What I want to encourage you to do is save something—even if it’s just the match to start.

It’s worth remembering that, according to Federal Reserve survey data, the median savings account balance for Americans is around $8,000 If maxing out your 401(k) feels impossible right now, that does not mean you aren’t doing enough. What matters most is starting where you are and building from there.

Below is a chart of past 401(k) contribution limits. Take a moment to think about how incomes have—and haven’t—changed over the years. Consider what you earned when you first started working compared to today.

For 2026, the 401(k) contribution limit is $24,500.

Get the match. Save what you can. Increase when you’re able.

Progress matters more than perfection.