Mid-Year 401(k) Checkup: Is Your Retirement Plan on Track?
As summer unfolds and calendars fill up, it’s easy to put financial matters on the back burner. But this is one of the most helpful times to give your 401(k) some attention. Whether you’re contributing to a retirement plan as a participant or overseeing one as a plan sponsor, taking stock of where things stand now can help position you well by year-end.
For plan participants, the middle of the year is a strategic checkpoint. If your goal is to max out contributions, the sooner you evaluate your progress, the easier it is to spread any additional dollars across your remaining paychecks. In 2025, the annual contribution limit is $23,000 for those under 50 and $30,500 for those aged 50 and over, thanks to the catch-up contribution allowance. Take a moment to look at your current deferral rate and compare it to the number of pay periods remaining this year. You may only need a small adjustment to hit the annual maximum by December.
Investment Allocations
Beyond contribution levels, now is a good time to revisit your investment allocations. Market dynamics are always shifting, and what felt like a solid portfolio mix in January might not serve you as well today. A mid-year review gives you the opportunity to rebalance based on your current risk tolerance and time horizon.
Don’t Leave Money on the Table
Finally, participants should double-check that they’re receiving the full benefit of any employer match. It’s common for employees to miss out on part of the match because their deferral rate falls just short of the requirement. Make sure you know what it takes to receive the full employer contribution and that your current strategy is aligned.
Assess Your Plan’s Health
For plan sponsors, this is your opportunity to assess plan health before the year-end rush. Are employees contributing enough to take full advantage of your match? Are participation rates holding steady—or falling off? If engagement is lagging, consider a mid-year communication campaign or explore nudges like automatic escalation. These small adjustments can make an impact on plan effectiveness.
It’s also wise to review your plan’s design through the lens of recent regulatory changes. Under the SECURE Act 2.0, long-term, part-time employees will become eligible for 401(k) plans starting in 2025 for most sponsors. Use the mid-year window to help ensure your systems and processes are prepared.
Plan Fees and Vendor Performance
Another key area for review is plan fees and vendor performance. Conducting a benchmarking exercise mid-year can give you time to evaluate whether current fees are competitive and whether vendors are delivering sufficient value. If changes are needed, starting now gives you the time to act without rushing through decisions before year-end.
Making adjustments now also helps allow for more time for larger plan changes that require advance notice or coordination between HR, finance, and administrative teams. Whether you’re thinking about implementing automatic enrollment, adjusting matching formulas, or updating vesting schedules, addressing them during the summer provides a crucial lead time before changes must be finalized for the year.
The Bottom Line
Ultimately, your 401(k) is not a “set it and forget it” benefit. It’s a dynamic tool that requires regular attention to deliver long-term value. A mid-year checkup—whether you’re a plan participant aiming to optimize your retirement savings or a sponsor responsible for stewarding a robust and compliant plan—offers an opportunity to course-correct while there’s still time.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Patricia L. Hutchinson
Director of Retirement Plan Services
AIF®, MBA