Also, as per your other posts, I think you don’t agree with numbers 4 and 5. The order should be 401(k) to employer match, then max Roth, then max 401(k).

An interesting question is where 529 funding fits into this order. I do it before maxing out the 401(k) but after the Roth. Others have debated that this potentially gives up retirement savings for college savings, which one has to be careful about because, as is often said, “You can get a loan for college, but not for retirement.”

However, what is also often true is, “You can delay retirement but not college (much).”

But the most convincing argument for not necessarily maxing out one’s 401(k) and instead putting some money in a 529 (if needed) is that the maximum is a statutory limit having nothing whatsoever to do with an individual’s needs. That is, if you feel that saving 20% for retirement is sufficient and you can do this without maxing out your 401(k) (though after maxing out your Roth) then stop and save for your other needs. Putting money in a 529 is sensible if you’re already doing enough for retirement independent of whether or not you’ve hit the arbitrary statutory cap. Congress does not know how much you should save for retirement. The max is just the max, not the right number.