Does it make sense to max out my 401k if I want to retire by 40-45?

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Gives you another pool of money to access with less tax obligations at 65.

Assuming you can manage between then it makes sense.

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If you won't need access to that money until after the penalty ages (55 for 401k, 59.5 for IRA) or you have another strategy in place to avoid the penalty then it's probably beneficial.

Early retirement is a fantastic goal! Some early distribution strategies can get complicated, so understanding the intricacies is important. But if you won't need those funds even better.

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Ideally, no. Normally, you can't access your 401(k) until your mid to late 50s without penalties.

Yes, why not. I imagine you’re socking away much more than $20k per year if you’re planning to retire by 45.

Here’s the challenge. Retire by 40 even with max 401k contributions. Then you’re golden…

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