100 Days to Go: Essential 401(k) Tasks for Fall

The leaves are turning, the days are shortening, and there's a sense of urgency in the air as we approach the final stretch of the year. With just 100 days left before we bid farewell to 2023, now is the perfect time to ensure your 401(k) is optimized for the future. Both employers and employees can seize this seasonal moment to bolster their retirement strategies, ensuring compliance and enhancing retirement outcomes.

Conduct a Strategic Retirement Plan Review (For Employers)

As an employer, you're tasked with ensuring that your retirement plan aligns with your business goals and team dynamics. Take this time to conduct a thorough strategic review. Are your auto-enrollment settings, matching contributions, and eligibility criteria still serving your organization well? Autumn adjustments can prevent future misalignments from derailing your retirement plan's effectiveness.

Get Ahead of Nondiscrimination Testing (For Employers)

The end of the year comes with essential compliance checks, including nondiscrimination testing. Begin prepping your census data and contributions now to streamline this process. Reflect on historical results and consider if exploring safe harbor plans or qualified nonelective contributions might be beneficial. Proactive steps can ensure your plan meets regulatory requirements without hiccups.

Review and Update Beneficiaries (For Employees)

Life changes rapidly, and so should your retirement paperwork. Employees, take a moment to review and update your beneficiary designations. Life events like marriage, divorce, or the birth of a child should prompt these updates. This simple yet impactful task ensures your 401(k) aligns with your current wishes and family dynamics.

Maximize 401(k) Contributions (For Employees)

This fall, evaluate your 401(k) contributions against the upcoming limits for 2025: $23,500, plus an additional $7,500 if you're over 50. Even minor increases in your contribution rate can yield significant tax advantages and compound growth benefits. The time to take action is now, and remember, every little bit helps in the long run.

With the clock ticking, there's still ample opportunity to make meaningful changes. By addressing even one or two of these tasks, you pave the way for less stress and greater confidence in your financial future. Reach out to your advisor or HR team for guidance and support, and let's make these final days of the year count for your retirement readiness.