Tips for Maximizing Your 401(k) in the New Year

The New Year is upon us and it’s time to review your 401(k), but you may not be sure what you need to be considering. Our Retirement Plan Administrator is here to help with tips on how to maximize your plan’s potential in the New Year!

Retirement Plan Administrator Billy McMahon’s Tips:

• Don’t miss out on the FREE MONEY: Sit down and take a look at your 401(k) contributions for 2021. If your employer offers a matching contribution on your deferrals and you did not capture the full match, you are leaving free money on the table. Consider increasing your deferrals for this new year to make sure you are taking full advantage of your 401(k) benefit.
• New year, higher saving limits: In November, the IRS announced the new saving limits for 2022. The deferral limit for 401(k) plans increased by $1,000 to $20,500 (with the over age 50 catch-up contribution remaining at $6,500). Even if maxing-out deferrals doesn’t fit in your budget, an increase of even 1% each year could make a huge impact over a 20-30 year career of saving for your retirement.
• How are you invested? Over time, the value of your investments will change as different assets outperform others, and this impacts the make-up of your portfolio. Rebalancing your portfolio allows you to maintain your desired risk level.

Disclosure: You should not assume that any information provided serves as the receipt of, or as a substitute for, personalized investment advice from Waverly Advisors. This article reflects information available at the time it was written and should be used as a reference only. Talk to your Waverly Advisors, or a professional advisor of your choosing, for the most current information or for guidance specific to your situation.