Tough to Max Out That 401(k)

The current annual limits on 401(k) contributions are $19,000, with an additional $6,000 for those 50 and older to make in catch-up contributions. That might not seem like such a hard target to reach, but only a fraction of investors actually accomplish it, according to a report from Vanguard.

Only 13 percent of participants maxed out their 401(k) contributions in 2017, when the limit was $18,000, Vanguard says. For comparison, 9.1 percent of workers whose 401(k) plans are managed by Fidelity Investments reached the cap, up slightly from 9 percent at the end of 2017 and 8.1 percent at the end of 2013.

Boomers were most likely to max out their 401(k) plans, followed by Generation X, and lastly millennials. Unsurprisingly, these investors had higher incomes, were older and had longer tenure at their employers.