<h1>3 Considerations for Increasing Your 401k Contribution After a Raise</h1>
<p>I'm Tyler, a former financial advisor and portfolio manager. If any of this is helpful, sign up for my free newsletter by clicking the link in my bio.</p>

<h2>1. Assessing the Company Match</h2>
<p>If you’re already getting the full company match, dumping more into your <strong>401k</strong> might not be the best move, especially if you have no liquid investments needed for the next <strong>20 years</strong>.</p>

<h2>2. Understanding Tax Implications</h2>
<p>Remember, a <strong>401k</strong> is tax-deferred, not tax-free. The bill will still come, just later. You might find yourself pulling five figures a month with no deductions, creating a hefty tax bill.</p>

<h2>3. Splitting the Raise</h2>
<p>Alternatively, consider taking the raise and splitting it: put half into a brokerage account for flexibility and the other half into the <strong>401k</strong> for long-term thinking. Diversify not just your assets, but your access to them.</p>

<h2>Conclusion</h2>
<p>A raise is freedom fuel, so use it to buy options that fit your financial strategy.</p>