Your 401(k) Check-In: Q4 2025 Guide
Review your 401(k) before 2025 ends: contributions, fees, taxes, and smart moves to strengthen your retirement plan.
Maximize Your 401(k) Before 2025 Ends
The end of the year is the perfect time to take stock, review goals, organize expenses, and plan for the year ahead.
But there’s one area that often goes unnoticed — the 401(k), the employer-sponsored retirement plan that serves as the cornerstone of financial security for millions of workers in the United States.

With the fourth quarter of 2025 underway, now is the ideal moment for a complete 401(k) check-in.
1. Review your contributions before the year ends
The IRS (Internal Revenue Service) annual limit for 401(k) plans this year is $23,000, with an additional $7,500 catch-up contribution available for those aged 50 or older.
If you haven’t reached that limit yet, it might be worth increasing your contribution percentage in these last few months of the year.
Even a small adjustment to your payroll deduction can make a difference, especially considering the tax benefits.
If you received a raise, bonus, or commission at the end of the year, this is the time to direct part of those funds straight into your 401(k).
2. Rebalance your investment portfolio
In 2025, the market has seen gains in technology and clean energy sectors, while bonds and fixed-income funds have become more attractive as interest rates stabilized.
Rebalancing means returning to your original investment mix — for example, 70% in stocks and 30% in bonds.
Most 401(k) plans allow you to adjust allocations online or through an app. A good rule of thumb is to review your mix at least once a year, preferably in the last quarter, when the economic and fiscal outlook for the next year is clearer.
3. Check your employer match
The employer match — the company’s contribution to your 401(k) — is one of the plan’s biggest advantages.
If your employer offers, for instance, a 100% match up to 4% of your salary, failing to contribute at least that amount is like turning down free money.
The end of the year is the right time to ensure you’ve maximized your available match. Some employers calculate it annually, while others do it quarterly.
If you paused your contributions at any point in 2025, make sure to catch up before year-end.
Also, check for updates to your company’s policies — many employers have added ESG options, cryptocurrency funds, or target-date funds with new maturity dates.
4. Reevaluate your funds and fees
Not all 401(k) funds are created equal. Some charge higher expense ratios, which can eat into your returns over time.
Use your plan’s dashboard or annual report to compare performance and fees among available funds.
Low-cost index funds, such as those tracking the S&P 500 or Russell 2000, often provide better long-term value for investors.
5. Verify your beneficiaries
A simple yet often forgotten step is updating your 401(k) beneficiaries.
Changes in marital status, the birth of a child, or other family events can make your listed information outdated.
The fourth quarter is the perfect time to ensure your account reflects who should receive the funds in the event of your death.
6. Evaluate your tax strategy for 2026
Traditional 401(k) contributions reduce your taxable income for the current year, while Roth 401(k) contributions allow for tax-free growth in the future.
Depending on your income bracket and potential IRS rule changes, it might be wise to diversify between the two.
If you expect lower taxes in 2026, the traditional 401(k) could be more beneficial now.
7. Take advantage of plan resources and incentives
Many employers offer financial education tools, retirement calculators, and even free consultations with certified advisors. If you haven’t taken advantage of these resources yet, now’s the time.
Some plans also allow 401(k) loans or specific withdrawals for cases of financial hardship — but these should be used with caution and only when absolutely necessary.
8. Prepare for the new cycle
The final quarter is also about preparing for 2026. Set contribution goals — even small ones — and create reminders for quarterly check-ins.
Automating contributions and tracking your balance regularly helps you stay focused on the long term and avoid emotional decisions during market downturns.
It’s also wise to align your 401(k) with other retirement strategies, such as IRAs or brokerage investments.