7 strategies to strengthen your 401(k)
If you're contributing to an employer-sponsored 401(k) plan, consider taking these steps to help maximize your retirement benefits.
Take advantage of your employer match
Try to contribute as much as necessary to get the maximum matching contribution from your employer.
Review and adjust your plan annually
Increase your contributions when possible - for example, after paying off a car, you can redirect those freed-up funds to your 401(k) - and set up an automatic 1% annual increase.
Be aware of rollover fees
If you change jobs, consider rolling over your 401(k) to avoid fees and maintain tax benefits.*
Max out contributions
If possible, contribute the annual maximum, which is $23,500 for 2025. If you're 50 or older, you can contribute an additional $7,500. If you're 60–63, your catch-up limit could be $11,250 depending on your plan.
Diversify investments
Spreading your investments across different asset classes can help to reduce risk and minimize fees.
Stay invested
Avoid panic selling. Staying invested through ups and downs can be key to long-term growth.
Withdraw funds when it's time (and only when it's time)
Taking distributions before age 59 1/2 can result in penalties and taxes, but you must start taking withdrawals at age 73 (75 if born in 1960 or later) to avoid penalties.
*Be sure to consider all of your available options and the applicable fees and features of each option before moving your retirement assets.
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