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Yearly Check-Up

December 23, 2021

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Year-end 401(k) moves to make

The end of 2021 is coming. That means it’s time to address your 401(k). You want to make sure you’re getting the most value out of this retirement account. Here are some moves to make before 2022 arrives.

Match Up

One of the best parts of a 401(k) is the employer match. Your employer will sometimes match 401(k) contributions, up to a certain point. It’s essentially free money. You want to make sure you’re taking advantage of this match. Set your contributions to the full matching amount before the year is over.

Max Out

For 2021, the max 401(k) contribution is $19,500 if you’re 50 or younger; $26,000 if you’re 50 or older. The time is now to get as close to that max as possible because it will take some time for payroll to change your contributions.

Review Things

Before the year ends, take some time to review your investment mix. As The Richmond Dispatch notes, you want to make sure you’re not paying too much in fees. If the fees don’t sit right with you, you might want to shift more of your portfolio to index funds. Index funds — unlike mutual funds — are passively managed, and that makes their fees lower.

Act Now

Your 401(k) can be a good investment tool. It can be a great tool if you are taking full advantage of it. Act now to make sure you’re getting the most value. Don’t sit around and just hope for the best. Time goes by faster than you think.

 

 

This article was originally published by Chris O'Shea on savvymoney.com

 

The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank and/or its affiliates, SavvyMoney, assume no liability for any loss or damage resulting from one's reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation. 

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