1. Max Out Your Contributions

The contribution limit for 2024 is $23,000 for those under 50 and $30,500 for those 50 and older, including catch-up contributions. If you haven't reached this limit, consider increasing your contributions now. Maxing out your contributions not only boosts your retirement savings but also provides potential tax benefits.

2. Adjust Payroll Deductions

If you need to contribute more to meet your retirement goals, adjust your payroll deductions accordingly. Contact your HR department to ensure these changes are made promptly. This step is essential to ensure that you contribute the desired amount before the year ends.

3. Assess Investment Allocations

Review your current investment allocations to ensure they align with your risk tolerance and retirement goals. The end of the year is an excellent time to rebalance your portfolio if necessary. This helps maintain the right level of risk and can optimize your returns as you approach retirement.

4. Maximize Employer Match

Make sure you are contributing enough to receive the full employer match. This is essentially free money that can significantly enhance your retirement savings. Check your plan details and adjust your contributions if needed to take full advantage of this benefit.

5. Review and Update Beneficiaries

It's important to keep your beneficiary designations up to date, reflecting any life changes such as marriage, divorce, or the birth of a child. This ensures that your 401(k) benefits are distributed according to your wishes and avoids any legal complications in the future.

6. Plan for Required Minimum Distributions (RMDs)

If you are 72 or older, you are required to take RMDs from your 401(k). Failing to take the RMD can result in substantial penalties. Make sure you know the amount you need to withdraw to meet the RMD requirement and avoid any unnecessary fines.

Taking these steps now can help you maximize your retirement savings and ensure you are on the right track for a secure financial future. If you have any questions or need assistance, don't hesitate to reach out to Knott CPA. We're here to help you make the most of your 401(k) plan.