As the Leaves Fall, Your Financial Future Awaits

With only 100 days remaining in the year, we're in the home stretch toward securing a robust financial future. Fall makes us keenly aware of change and, now, it's time to leverage this seasonal shift to revisit your 401(k) strategy. It's not just a countdown—it's an opportunity. Whether you're an employer fine-tuning retirement plans for your team or an employee steering toward better retirement outcomes, there's still time to act and optimize your 401(k). Let's use this period wisely for better compliance and improved retirement results.

Conduct a Strategic Retirement Plan Review (For Employers)

As an employer, assessing whether your retirement plan is aligned with your evolving business goals and team dynamics is crucial. Inspect the auto-enrollment settings, evaluate matching contributions, and verify eligibility criteria. Bringing your plan in tune with current needs can prevent future gaps and misalignments. Make this adjustment timely—your team deserves a plan that reflects both their present and future aspirations.

Get Ahead of Nondiscrimination Testing (For Employers)

Prepare now to simplify year-end nondiscrimination testing. Begin collecting your census data and scrutinize past results to anticipate any compliance concerns. Consider the proactive adoption of safe harbor plans or qualified nonelective contributions if your past results suggest potential issues. This foresight is essential to maintaining compliance and demonstrating fairness to all employees.

Review and Update Beneficiaries (For Employees)

Life is nothing if not changeable: marriage, divorce, or children can upend personal priorities. Ensure your beneficiary designations reflect your current life situation. This small yet impactful task ensures your 401(k) accurately reflects your wishes and avoids any unwelcome surprises for your loved ones.

Maximize 401(k) Contributions (For Employees)

Consider bumping up your contribution rates as you close out the year. Boasting a cap of $23,500 (and an additional $7,500 for those over 50), the 2025 limit offers ample room for strategic growth. Don’t underestimate the power of compounding interest and tax advantages. Even small increases now can bolster your financial standing dramatically over time.

It's Not Too Late to Make a Difference

While the year may be winding down, the chance to fortify your financial future is still within reach. Implementing even one or two strategic updates can yield significant improvements. Proactive measures now mean fewer headaches and greater financial assurance later. Reach out to your trusted advisor or HR team for insights and support in making these critical updates. Let’s move forward, together, into a year-end that not only meets but exceeds your retirement goals.