Seize the Autumn Opportunity
As the leaves begin their annual transformation, we're reminded that change is not only inevitable, but it’s an opportunity. With only 100 days left in the year, now is the time for employers and employees to sprint toward securing their financial future. Fall isn’t just about pumpkin spice lattes and apple picking—it’s the perfect season to fine-tune your 401(k) strategies for better compliance and improved retirement outcomes. Let’s dive into the crucial tasks both employers and employees should prioritize.
Strategic Retirement Plan Review (Employers)
Employers, it’s important to ask: Does your current retirement plan still reflect your business goals and team dynamics? Now’s the ideal time to evaluate auto-enrollment settings, matching contributions, and eligibility criteria. Making adjustments now can prevent future misalignments and ensure your team is on the right path to retirement readiness. By refining your plan, you're also demonstrating your commitment to your employees' financial well-being.
Get Ahead of Nondiscrimination Testing (Employers)
Year-end preparations can sneak up faster than expected. Start compiling your census data and contributions for nondiscrimination testing today. Reflecting on historical testing results can reveal trends that may need addressing. Consider exploring safe harbor plans or qualified nonelective contributions if necessary. Proactive efforts will not only keep you compliant but also instill trust and reliability within your organization.
Review and Update Beneficiaries (Employees)
Life changes can impact your plans, so it’s crucial to keep beneficiary designations updated. Has there been a marriage, divorce, or new child this year? These changes are important milestones and should trigger a review of your beneficiary listings. This simple task ensures that your assets are protected and will be distributed according to your wishes, offering peace of mind.
Maximize 401(k) Contributions (Employees)
As we approach year-end, consider increasing your contribution rates. For 2025, the limits will be $23,500, with an additional $7,500 for those 50 and above. These contributions come with tax advantages and the incredible power of compounding. Even small adjustments can yield significant benefits in the long run. Remember, the time to act is now!
With 100 days left this year, there's still time to make meaningful improvements to your 401(k) strategy. Implementing even one or two of these changes can lead to significant benefits, reducing future headaches and increasing your financial confidence. Reach out to your advisor or HR team for support—they’re there to help turn this seasonal sprint into long-lasting financial success.
