Contribute To Your 401(k) Plan

Contribute to your 401(k) plan. For 2016, you can contribute up to $18,000.  You pay no current taxes on the money contributed to the plan, and the income that is earned on the money contributed is also exempt from current taxes.  An individual who is at least 50 years of age may make an additional “catch-up” contribution of up to $6,000.