However, a 401(k) is unquestionably something to keep in mind, particularly given that it has much higher contribution caps. In 2022, you are allowed to contribute up to $20,500, or $27,000 if you are 50 years old or older. Setting yourself up for a comfortable future with that amount of money can be very beneficial. Your 401(k) plan's investments in mutual funds, index funds, target-date funds, and other vehicles are intended to protect you from significant losses.