Surprise! You Could Be Overdoing Your Retirement Contributions. Here's When to Stop
There really is a thing as over-funding an IRA or 401(k).
Overview
If you want to retire comfortably, saving consistently is crucial. You can't just depend on Social Security to cover your expenses, especially since those monthly benefits might only take the place of 40% of your paycheck.
That's why steadily funding an IRA or 401(k) is usually encouraged. These accounts offer an up-front tax break on contributions, making it easier to sock away funds for the future. Plus, you don't have to pay the IRS capital gains taxes until you take withdrawals, making these retirement accounts extra tax-efficient.
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Details
Source
Originally published at www.fool.com.
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