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Pro
Hmmm. If you are making $400k and your only savings is in your 401k, then that suggests that you have been spending around $250k/year. If you retire with $2.5M that will give you about $100k pre tax + $50k in pension. That gives about $125k after tax. That’s a 50% reduction in your spending. Can you really do that? Also note that the additional contributions starting in 2026 have to go to Roth 401k so you have to contribute after tax.
Pro
If that means that you are comfortable living on $125k after tax then great. And I would put the money into a HSA instead of a Roth 401k if you have that option. Otherwise do the Roth.
What’s the down side of putting more in the 401k? If you don’t have any debt, it’s a good place to put it
As MD1 noted, it seems like you need to save more. I’m in a very similar situation. 52 years old with roughly $2M saved (Roth, traditional, taxable) but I make around $150k and I will just be able to retire in 5-7 years with roughly $10k a month in expenses. I’m factoring in an increase in rent (I have traditionally lived in very cheap apartments) and a 3% inflation rate.
Fidelity suggests 50 year olds should have 6 times their salary saved but that is with a goal of retiring at 67.
You can probably do 55 if you save a lot more and plan to live an inexpensive life, but I would definitely run the numbers. There is good planning software available for around $150.
I would just stay in Mexico 🤣