Accounts

Should you max out your 401(k) or IRA at the beginning of the year?

Should you max out your 401(k) or IRA at the beginning of the year?

The idea is that more time in the market can potentially lead to higher returns over time. This is especially true for a Roth IRA, an investment account that is funded with money that has already been taxed, because its main benefit to investors is tax-free growth.