Your 401(k) might be your biggest retirement asset. But, is it getting the attention it deserves?

Many employees are automatically enrolled in their company’s 401(k) plan, defaulted into a Target Date Fund, and never revisit it. Over time, that “set-it-and-forget-it” approach can lead to missed opportunities, unnecessary fees, and a retirement portfolio that possibly doesn’t reflect your goals—or your options.

Let’s take a closer look at what we believe you need to know.

401(k) Plans Are Not Created Equal

Every company’s 401(k) plan is different. To really understand yours, we suggest you dive into the Summary Plan Description (SPD)—a document that can run anywhere from 20 to 200 pages long and outlines all the plan’s rules and features.

Here are a few things that can vary:

✔️ Vesting schedules for employer contributions
✔️ Matching rules and limits
✔️ Investment options—some plans offer very limited choices
✔️ Roth 401(k) availability
✔️ Loan and hardship withdrawal provisions
✔️ Rollover rules if you leave the company
✔️ Fees and expense ratios
✔️ Who the custodian, investment manager, and administrators are

Understanding your plan’s fine print can help you maximize what’s available…and avoid costly surprises.

Mind the Fees: They Could Be Eating Your Returns

Most people don’t realize their 401(k) may come with multiple layers of fees, even after they’ve left the employer.

Common 401(k) fees include:

• Plan administration fees – For record keeping, statements, and compliance
• Investment fees – Often built into mutual fund expense ratios
• Sales loads or commissions – Sometimes charged when buying/selling assets
• Individual service fees – For loans, distributions, or financial advice
• Management fees – Charged by investment managers or advisors

Even a 1% fee has the potential to reduce your lifetime savings by tens or hundreds of thousands of dollars. That’s why we feel it’s important to read your fee disclosures and consider whether your account is in the best place for you now.

What Happens When You Change Jobs?

According to a recent study by Capitalize:

➡️ There are 29.2 million forgotten 401(k) accounts
➡️ They hold approximately $1.65 trillion in assets
➡️ That’s 25% of all 401(k) plan assets

If you leave a job and leave your 401(k) behind, your money could:

➡️ Sit in a high-fee, poor-performing investment
➡️ Get cashed out or rolled over without your input
➡️ Be forgotten altogether

And with today’s job-switching trends, it seems to be happening more than ever.

How to Find a Lost or Forgotten 401(k)

If you think you might have an old 401(k), here are a few ways to track it down:

1. Check old account statements (paper or digital)
2. Call former employers, especially HR or Accounting
3. Review past W-2s to see where retirement contributions went
4. Search the NAUPA Database for unclaimed property by state
5. Use the DOL’s Form 5500 Search for employer retirement filings
6. Check the PBGC Missing Participants Database for terminated plans  
7. Search the NRURB Registry, which helps match people with old accounts
8. Explore the Abandoned Plan Program if your former employer no longer exists

Even one recovered account could add thousands to your retirement income.

How Much Should You Contribute—and to What?

Once you understand your plan, the next question is: Are you contributing enough, and to the right type of account?

Many plans now offer both traditional (pre-tax) and Roth (after-tax) 401(k) options. Choosing the right one depends on your current tax bracket, expected retirement income, and whether tax savings today may fit into the overall context of your financial plan.

Other contribution considerations:

• Are you contributing enough to get the full employer match?
• Are you maxing out your contributions ($23,000 in 2025, plus $7,500 catch-up if you’re 50+)?
• Should you increase contributions over time or allocate bonuses?
• Can you benefit from an in-plan Roth conversion strategy?

Choosing the right contribution path could save you significantly in taxes and may help you build more wealth over time.

We Believe Your 401(k) Deserves a Strategy

We believe your 401(k) shouldn’t sit untouched for decades. Instead, it should be part of a larger plan that supports your goals, timeline, and income needs.

Ask yourself:

✔️ Are your investments right for your time horizon and risk tolerance?
✔️ Are you optimizing the match and minimizing unnecessary fees?
✔️ Are you maximizing your investment strategies and growth potential?
✔️ Are you coordinating your 401(k) with the rest of your retirement plan?
✔️ Do you know what to do with it if you switch jobs?

If you’re not sure, you’re not alone…and you don’t have to figure it out alone either.

We review every client’s Summary Plan Description so we can help them make the most of what they’ve earned.

👉 Whether you’re new to your 401(k) or juggling several from past jobs, let’s help you create a strategy that works smarter—not just harder—for your retirement.