Things You'll Need
- Prospectus for 401k plan
- Wage deferral form
6 Steps to Increase 401k Savings
1. Maximize Your Employer's Matching Funds İn Order to İncrease Your 401k Savings
Your employer will likely offer a certain number of cents for each dollar up to a stated percentage of employee deferral. Contribute the maximum percentage in order to gain the full benefit of company 401k matches.
2. Avoid Irs Penalties During Tax Season by Sticking to the Maximum Contribution Level for 401k Accounts
You can avoid hundreds of dollars in tax penalties by keeping your annual 401k contributions below $15,500.
3. Send Your Company's Annual Bonus and Stock Options Back İnto Your 401k Savings
This option is ideal for employees who have a relatively low contribution level throughout the year and want to submit their annual bonuses to the 401k to prevent additional taxation.
4. Switch Your 401k Provider İf You Notice a Higher Performing Provider Offered by Your Employer
Your company is required to provide competitive 401k options and you are permitted to roll over funds from one account into another to maximize your savings.
5. Increase the Deferred Amount İn Each Paycheck as You Begin to Gain Profit Sharing and Other Additions to Your İncome
You can adjust your contribution amount with a form offered by your employer any time you receive a raise or other financial incentive.
6. Examine Your 401k Account Online on a Regular Basis to Ensure Your Retirement Savings are Sufficient
Managing companies will update investors on the growth of their account, including the performance of component stocks and mutual funds, on a regular basis. You should switch 401k accounts if you notice a steady decrease in your yields.
Patrick Harwood
Patrick Harwood has been a professional writer and editor since 2004, specializing in articles about spectator sports, personal finance and law. He has contributed to family of magazines and websites.
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