, Columnist
The Case for Putting Your Bonus Into a 401(k)
Stocks are cheap and contribution limits have jumped, making 2023 a great time to invest that annual payout for the long term.
Delay gratification today to enjoy more of it tomorrow.
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Making the most of a bonus is always important, but 2022’s payout feels even more precious. Many workers, especially in finance and technology, are likely to see slimmed-down bonuses. Amid economic uncertainty, maximizing those dollars is crucial.
But should you sock away as much as you can in a tax-deferred retirement account to minimize the tax liability? Or keep the money somewhere accessible and liquid so you have cash on hand for any emergencies? Or use it to pay off debt?