Capture Full Employer Match
30 minutesCalculate the contribution percentage needed to receive 100% of employer matching — this is an immediate 50-100% return on investment.
Intermediate2-4 hours
401(k) Optimization Guide
401(k) optimization guide for maximizing employer match, contribution limits, fund selection, Roth vs traditional allocation, and rollover decisions.
401(k) participantsemployees with employer matchjob changers with old 401(k)s
Workflow
Maximize Contributions
1-2 hoursIncrease contributions toward the annual limit ($23,000 in 2024, $30,500 with catch-up at 50+) using gradual increases.
Optimize Investment Selection
1-2 hoursChoose low-cost index funds, appropriate asset allocation, and avoid high-fee target-date funds if you can self-manage.
Manage Old 401(k) Accounts
2-4 hoursDecide whether to roll over old 401(k)s to current employer plan, IRA, or leave in place based on fees and investment options.
Plan Future Withdrawals
1-2 hoursUnderstand RMD rules, early withdrawal penalties, Roth conversion opportunities, and in-service rollover options.
Tools Used
- 401(k) CalculatorPrimarySupporting
Calculate contribution needed to capture full employer match. · Project balance at retirement with increased contributions. · Model impact of fee reduction on long-term balance. · Compare rollover options for old 401(k) accounts. · Plan RMD amounts and Roth conversion strategy.
- Salary CalculatorSupporting
Convert match percentage to dollar amount on your salary.
- Savings CalculatorSupporting
Determine optimal contribution rate as percentage of income.
- Investment Return CalculatorPrimary
Compare fund performance net of expense ratios.
- Roth IRA CalculatorSupporting
Evaluate mega backdoor Roth eligibility and benefits.
Checklist
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Contributions
Investments
Rollover
Legal
Reference Materials
401(k) Contribution LimitsTable
Annual contribution limits and catch-up provisions.
| Year | Employee Limit | Catch-Up (50+) | Total (with employer) |
|---|---|---|---|
| 2024 | $23,000 | +$7,500 | $69,000 |
| 2025 | $23,500 (est.) | +$7,500 | $70,000 (est.) |
401(k) Rollover Decision GuideStandard
Roll to IRA: more investment options, lower fees. Keep in old plan: if exceptional fund options or creditor protection needed. Roll to new employer: simplest if good plan. Never cash out.
Free Money First
Employer match is a guaranteed 50-100% return — always contribute enough to capture the full match before any other investing.
Never Borrow from 401(k)
401(k) loans seem cheap but you repay with after-tax dollars, lose market returns on borrowed amount, and must repay immediately if laid off.
Auto-Escalation
Enable automatic 1% annual contribution increases — participants who auto-escalate save 2x more over their career.
Check Vesting Schedule
Employer match may vest over 3-6 years — know your vesting schedule before job changes to avoid leaving free money behind.
Safety Notes
- Avoid cashing out 401(k) when changing jobs — the 10% early withdrawal penalty plus income tax can consume 30-40% of your balance.
- Be cautious of financial advisors recommending expensive annuities or loaded funds within your 401(k) — low-cost index funds outperform 80%+ of active managers.