Embrace the 100-Day Countdown
The vibrant hues of fall signal more than just a change in season; they mark a critical 100-day countdown to close the year. For many of us, it's the last chance to review and optimize our 401(k) strategies. This period is pivotal for both employers and employees to ensure their retirement plans are not only compliant but capable of delivering desired outcomes. Conduct a Strategic Retirement Plan Review (For Employers)
Employers, now is the time to critically evaluate your existing retirement plans. Do they align with your business goals and team dynamics? Assess auto-enrollment settings, matching contributions, and eligibility criteria. Adjustments made now can preempt misalignments in the future, ensuring that your plan serves both compliance needs and employee expectations effectively. Get Ahead of Nondiscrimination Testing (For Employers)
Nondiscrimination testing can be a sticking point if not prepared for adequately. Start compiling your census data and reviewing historical results early. This proactive approach allows time to pivot to safe harbor plans or consider qualified nonelective contributions if needed, thereby averting year-end compliance hurdles. Review and Update Beneficiaries (For Employees)
A simple yet critical task is ensuring your beneficiary information is current. Significant life changes such as marriage, divorce, or having children are good prompts for updates. This small action can make a tremendous impact on your loved ones' futures, emphasizing the importance of maintaining valid and updated designations. Maximize 401(k) Contributions (For Employees)
Fall is an ideal time for employees to consider hiking their 401(k) contributions. For 2025, the limits are set at $23,500 with an additional $7,500 for those 50 and over. Increasing contributions, even slightly, can deliver considerable tax advantages and the compounding benefits necessary for a financially secure retirement. There’s Still Time to Act
The clock is ticking, but there's still time to make impactful changes. Incorporating even a couple of these practices can significantly enhance outcomes and reduce future stresses. Proactive planning not only alleviates end-of-year pressure but boosts financial confidence as you stride into the coming year. Reach out to your financial advisor or HR team today and secure the support you need to finalize these crucial adjustments.
