Your Essential 401(k) Check-In for Q4 2025: Stay on Track Before Year-End

Your future deserves a final review.

As 2025 draws to a close, it’s the perfect time to pause and give your 401(k) some well-deserved attention. A year-end review can reveal whether your savings strategy still aligns with your goals and current financial situation.

A 401(k) check-in in Q4 isn’t just about contributions or balances—it’s about making intentional choices that secure your long-term financial freedom. Small adjustments now can make a big impact on how comfortable your retirement years will be.

Whether you’re just getting started or have been saving for decades, this quarter’s review helps ensure you’re not leaving money—or opportunities—on the table.

Check Your Contribution Rate

Start by reviewing how much you’re contributing. In 2025, the IRS limit for employee 401(k) contributions is $23,000, or $30,500 if you’re 50 or older. If you haven’t maxed out your contributions yet, Q4 is your last chance to increase your percentage and take full advantage of the tax benefits.

Even a small bump—say from 8% to 10%—can make a noticeable difference over time, especially with employer matching. Remember, contributing just enough to get the full company match is essentially accepting free money toward your future.

Also, if you received a raise this year, consider allocating a portion of it toward your 401(k) instead of your spending budget. It’s an easy way to boost savings without feeling the impact.

Rebalance Your Investment Portfolio

Markets have shifted throughout 2025, with inflation, interest rate changes, and global events influencing returns. This makes Q4 an ideal moment to rebalance.

If your stock allocation has grown disproportionately due to market gains, your portfolio may now carry more risk than you intended. Rebalancing ensures your mix of stocks, bonds, and cash still fits your risk tolerance and time horizon.

Most 401(k) platforms allow automatic rebalancing, but it’s wise to review your allocation manually once or twice a year. Staying proactive now can protect you from volatility later.

Review Employer Matching and Vesting

Employer contributions are a key advantage of having a 401(k). Before the year ends, check how your employer’s matching formula works. Are you getting the full match available to you?

If you’re close to meeting vesting requirements—often two to five years of service—avoid making job changes until you’re fully vested. Leaving early could mean losing part of your employer’s contribution, which can add up to thousands of dollars over time.

Make sure your HR department or benefits portal lists your vesting schedule clearly. This information helps you plan smartly for career moves and long-term wealth growth.

Adjust for Life Changes

Have you had any major life changes in 2025? Marriage, a new baby, or a career shift can all influence your financial goals and retirement needs.

Your 401(k) strategy should evolve alongside your life. For example, a growing family might lead you to reassess your risk tolerance or shift toward more conservative investments. Alternatively, if your income increased, you might raise contributions or explore a Roth 401(k) option for future tax flexibility.

The key is making sure your plan reflects your current reality—not last year’s version of it.

Evaluate Fees and Plan Options

Many people overlook 401(k) fees, yet they can quietly eat into your returns. Take time this quarter to review your plan’s expense ratios and administrative costs.

If your 401(k) offers multiple funds, compare performance and fees side by side. Consider switching to lower-cost index funds if your current options carry high expenses with average returns. Over decades, minimizing fees can translate into significant savings.

It’s also worth exploring whether your employer has added new investment options this year. Companies often refresh plans, and better choices might now be available.

Final Thoughts

A thoughtful 401(k) review in Q4 2025 is your opportunity to end the year strong. It ensures your savings plan is balanced, efficient, and in sync with your goals.

Take a few minutes this month to log in, check your progress, and make small but strategic adjustments. Your future self will thank you for the attention you give today.

Written by

Everaldo Santiago