Make the Most of Your 401(k)
401(k) Distribution Options
Some important areas to consider include:
- How much should I contribute to my 401(k)?
- Am I taking full advantage of any available employer match?
- How should my contributions be invested?
- Should I consider traditional or Roth 401(k) contributions, if available?
- What should I do with my 401(k) when I change jobs or retire?
- How does my 401(k) fit with my other retirement accounts and investments?
Review Your Investment Strategy
Your investment needs can change over time. Reviewing your 401(k) investment selections and asset allocation periodically can help you determine whether they remain aligned with your goals, time horizon, and tolerance for risk.
Consider Your Contribution Strategy
Your contribution amount does not have to remain the same throughout your career. Changes in income, expenses, family circumstances, and retirement goals may all be reasons to revisit how much you are saving.
If your employer offers matching contributions, understanding the terms of the match can also be an important part of evaluating your overall savings strategy.
Know Your Options When Changing Jobs
Leaving an employer can create an important decision regarding your retirement savings. Depending on your circumstances and plan provisions, you may have several choices, including leaving assets in your former employer's plan, moving them to a new employer's plan, rolling them into an IRA, or taking a distribution.
Each option has different features, costs, investment choices, and potential tax considerations. Before making a decision, it is important to carefully compare your choices.
Keep the Bigger Picture in Mind
Your 401(k) is one piece of your overall retirement strategy. As your career, financial circumstances, and goals change, periodically reviewing your contributions, investment selections, and available options can help ensure your approach continues to reflect your needs.
We can help you evaluate your 401(k) within the context of your broader financial picture and explore the options available to you.