Six tips to help you review your retirement account
You probably do lots of things once a year, such as getting a physical or changing the batteries in your smoke detector. But do you regularly look at your retirement account? If not, consider adding this to your yearly checklist. Use these six tips to guide you when reviewing your account.

1 Review your 401(k) balance and contributions
Start by looking at your retirement account statements. You may have more than one 401(k) account, so make sure you look at all of them. Each statement shows your balance and any changes that were made to your account.
How much are you saving from each paycheck? Things in your life can change, so think about whether the amount you’re putting away for retirement is enough to help you reach your goals. If you can, consider increasing your contributions for the next year—maybe right after you get a raise, so you won’t miss the extra money being taken from your paycheck. Saving even a little more can really add up over time.
2 Analyze your investment options and performance
Your 401(k) plan gives you a range of investments to choose from, including mutual funds, stocks, bonds, and target-date funds. Looking at how your investments did over the past year can help you decide if you need to make any changes, so you can stay on track to meet your retirement goals.
The investments you choose depend on how much risk you’re comfortable taking and how long you have until retirement. Generally, the more time you have until you retire, the more risk—and potential reward—you can take on. Market conditions can change over time, so your investment performance may not match your original plan. You can review your investments to adjust the amount you invested in each fund or change your investments based on how much risk you want to take, when you want to retire, and the performance of your investment options.
3 Evaluate your retirement goals
Major life events—getting married, having kids, or switching jobs, just to name a few—can affect your retirement plan. Checking your account regularly helps you keep your plan in line with your goals and lifestyle. Think about whether you’re still on track to stop working at your planned retirement age and with the expected income to cover your future expenses. If anything is different, you can update your plan to make the most of your savings and prepare for changes in your life or finances.
4 Update your personal information
Make sure your personal information—address, phone number, and email—is current. This can help you keep your account secure and prevent you from missing any important messages. And, if you notice anything unusual in your account, let your retirement plan provider know right away. Retirement accounts—like any account—can be subject to fraud, and taking immediate action can help you prevent someone from breaking into your account.
5 Check your beneficiary
Your beneficiary is the person or entity, such as a trust or a charity, who you designate to receive the money in your account when you pass away. Over time, things may happen in your life that affect who you want to be your beneficiary. That’s why it’s smart to review your beneficiaries each year, so they match your current wishes and life situation. This can also help your loved ones avoid potential legal disputes or delays. When adding beneficiaries, you usually need their full name and date of birth. Having the Social Security numbers can be helpful, but it’s not always required.
6 Consider your tax situation
Understanding the tax impact of your 401(k) contributions can help you make the most of your savings. Check your account to see if you’re taking full advantage of tax benefits and if your choices still make sense for you.
- Traditional 401(k) contributions come out of your paycheck before you pay taxes, so they lower the income taxes you pay today and have the potential to lower your current tax bracket. When you reach retirement age and are eligible to withdraw your funds, you’ll owe federal income tax on your contributions and any money they’ve earned.
- Roth 401(k) contributions are taken out of your paycheck after you paid taxes, so when you’re eligible to take the money out, you won’t owe taxes on the contributions or their earnings.
As you get close to retirement, plan your withdrawals with your tax situation in mind. Look at the types of accounts you have and plan your withdrawals based on your tax rate and the taxes you may owe. When your tax rate is high, consider withdrawing from accounts that won’t incur taxes. Likewise, consider taking from the taxable accounts when your tax rate is low. A certified tax or other financial professional can help you figure out the tax side of things if you’re not sure what to do.
Keeping your 401(k) account up to date
Your retirement account is easy to forget about—you make contributions with every paycheck, and it can seem like that’s all you need to do. But it’s critically important to know what’s happening in your retirement account, so that you can be sure your:
- Savings and investments are on track to help you meet your goals
- Goal still reflects what you want to achieve
- Account is secure
- Beneficiaries are up to date
- Tax strategies make sense for your situation
Important disclosures
Important information
The content of this document is for general information only and believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
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