With these tax-favored retirement accounts featuring ultra-high contribution limits of $18,500 for those who are younger than 50 and $24,500 for those who are 50 or older in 2018, well-off workers often seek to max out their annual 401(k) contributions.
Moreover, the fact that many employers add their own matching contributions to the money that you set aside from your own salary is just icing on the cake for retirement savers.
Yet there’s a trap for those unwary supersavers who seek to set aside as much as they possibly can in a 401(k). If you’re not careful with how you manage your savings over the course of the year, you can end up missing out on a portion of the employer matches that you’d otherwise be entitled to receive. Fortunately, it’s not hard to find a way around this problem once you’re aware of it, but if you don’t act, it can cost you thousands of dollars in missed matching contributions.