Get Serious about Your 401(k) Strategy This Q4
As Q4 begins, now is the time to review your 401(k) plan and make sure your retirement strategy is on track.
Waiting until December often means scrambling or missing out entirely.
But acting now can allow you to adjust contributions, rebalance your portfolio, and make proactive changes that may benefit you both at tax time and in retirement.
Here are some key 401(k) moves to consider in Q4 to help strengthen your retirement strategy before the year wraps up.
#1 Are You on Track with Your 401(k) Goals?
Before making any year-end moves, it’s important to take a step back and assess where you stand.
Are you on pace to hit your 401(k) savings goals for the year?
More importantly, are those goals aligned with your long-term retirement needs and your current risk tolerance?
Life and markets change, and so should your strategy. If it’s been a while since you checked in on your 401(k), now may be the time to:
- Review your current balance and contribution progress.
- Compare it against your annual goal.
- Reevaluate your target retirement age and income needs.
- Consider any major life changes this year that may affect your plan, such as job changes, salary increases, or changes in household expenses.
Many investors set their 401(k)s on autopilot, assuming their initial settings will carry them through.
But, in our opinion, staying on track requires active attention, especially in the final quarter of the year.
#2 Could You Increase Your Contributions?
Ideally, the goal is to max out your 401(k) contributions each year.
In 2025, that means $23,500 if you’re under 50 and $31,000 if you’re 50 or older.
But for many people, maxing out isn’t feasible – and that’s okay.
The more important question is: Can you contribute just a little bit more?
If you received a raise earlier this year, did your 401(k) contributions go up, too?
Or did that extra income get absorbed by lifestyle creep?
Even small contribution increases like 1-3% may have a major impact over time.
In Q4, contributing just a few hundred dollars more each pay could help reduce your taxable income before year-end.
This may also be a good time to:
- Confirm you’re contributing enough to get your full employer match.
- Consider directing any bonuses or windfalls toward your 401(k).
- Set a goal for increasing contributions gradually in the new year, especially if you’re behind on savings.
Remember: Every extra dollar you put in now benefits from compound growth, and Q4 is your last window to make tax-advantaged contributions for 2025.
#3 Did You Turn 50 This Year? Don’t Miss Catch-Up Contribution Opportunities
Turning 50 is a financial milestone that unlocks an important retirement savings benefit: Catch-up contributions.
If you are age 50 or older, the IRS allows you to contribute more to your 401(k) than younger workers.
For 2025, that means you are able to contribute an additional $7,500, for a total of $31,000.
If you’re ages 60, 61, 62, or 63, you may qualify for the new “super catch-up” contribution limit of up to $11,250, bringing your total contribution potential to $34,750 for the year.
We believe that is a significant opportunity to give your retirement savings a last-minute boost, especially if you’ve fallen behind or want to build a larger financial cushion.
Of course, you’ll need to earn at least that much to contribute the full amount.
But even smaller increases to your contributions may make a meaningful impact, particularly when compounded over time.
If you turned 50 this year or are already eligible for catch-up contributions, now may be the perfect time to review your current contributions.
Log into your 401(k) account or contact your plan provider or HR department to confirm you’re contributing the maximum amount available to you before the year ends.
#4 Have You Rebalanced Your 401(k) Lately?
Q4 is typically an ideal time to check whether your 401(k) portfolio still reflects your goals and risk tolerance.
Even if you haven’t made any changes this year, the market likely has.
Over time, strong stock performance or market volatility can shift your asset allocation – often without you realizing it.
This is known as portfolio drift, and it could mean your 401(k) is riskier (or more conservative) than you intended.
Let’s say you originally chose a 70/30 mix of stocks and bonds.
If the stock market has done well, that could drift to 76/24.
While that growth might seem like a win, it could also mean you’re now carrying more risk than you planned, which could hurt you if the market pulls back.
That’s where rebalancing comes in.
Rebalancing is the process of adjusting your investments to bring them back in line with your target allocation.
It often involves selling some of the overperforming assets (like stocks) and buying more of the underperforming ones (like bonds).
Why Q4 Can Be a Smart Time to Rebalance
- Align with year-end goals: If you’ve had a life change or retirement is getting closer, your risk tolerance may have shifted. Now’s the time to adjust accordingly.
- Avoid unnecessary risk: Left unchecked, a portfolio that’s too heavily weighted in one area could expose you to volatility you weren’t planning for.
- Stay focused on the long term: Rebalancing supports a disciplined investment approach…one that may keep you aligned with your goals, regardless of market swings.
Remember, rebalancing is not always about timing the market.
We feel it’s more about staying in control of your strategy.
#5 Have You Reviewed Your 401(k) Beneficiaries Recently?
Beneficiary designations aren’t something most people think about regularly – but they should be.
Your 401(k) beneficiary information determines who inherits your account if something happens to you.
And yet, many people forget to update these details after major life changes like marriage, divorce, having children, or losing a loved one.
If your designations are outdated or missing, your 401(k) assets could end up in the wrong hands or worse, tied up in probate.
Q4 is a natural checkpoint to make sure your retirement plan reflects your current life.
While reviewing your investments and contributions, take a moment to verify your beneficiary information.
It’s important to remember that beneficiary designations override your will.
That means whoever is named on your 401(k) paperwork takes legal priority.
Even if you set up your 401(k) years ago and haven’t thought about it since, log in to your account or contact your plan administrator to double-check.
Making a quick update now may prevent big problems for your loved ones later.
#6 Have You Scheduled a Year-End Review with a Professional?
As the end of the year approaches, it’s a good time to schedule a check-in with a retirement professional.
That’s where 401(k) Maneuver can help.
We provide professional 401(k) account management designed to help you grow and protect your 401(k) account.
Our goal is to increase your account performance over time, manage downside risk to minimize losses, and reduce fees that are hurting your retirement account performance.
When you enroll with 401(k) Maneuver, here’s what you can expect:
- Quarterly reviews and rebalancing personalized to your risk tolerance and the current market conditions.
- Email updates every time we review and adjust your account.
- Independent fiduciary advice focused entirely on your best interests.
- No in-person meetings required. Everything is handled online through our secure platform.
- Access to our online community, exclusive content, and a private Facebook group for professional insights.
Your 401(k) stays exactly where it is, and we manage it for you.
