Beat the December 31 Deadline: How to Maximize Your Year-End 401(k) Contributions.

As the year draws to a close, you have a great opportunity to give your finances a final boost: maximizing your 401(k) contributions. With the December 31 deadline fast approaching, the decisions you make now can have a real impact on your long-term retirement savings.

Why this deadline matters to you

A 401(k) is one of the best tools out there for building your retirement savings, thanks to its tax advantages and potential for long-term growth. Missing the year-end deadline means missing out on an entire year’s worth of potential investment gains. Plus, if you’re not contributing enough from each paycheck, you could leave valuable employer matching dollars on the table—essentially, free money for your future.

What you can still do before December 31

There’s still time to make a difference before the year ends. Here are a few simple steps you can take right now:

• Log into your 401(k) account or review your latest pay stub to see how much you have contributed so far this year.
• Compare your year‑to‑date contributions to the current annual limit and ask yourself whether you can increase your contribution rate for the remaining paychecks.
• If you are not at least contributing enough to receive the full employer match, consider raising your deferral percentage so you are not leaving any “free money” on the table.
• If you expect a year‑end bonus, decide in advance what portion you want to direct into your 401(k), and update your elections if your plan allows it.

Even a small bump—like increasing your contribution by 1–2% from each remaining paycheck—can add up to real money over the years.

How to update your contributions

Changing your 401(k) contribution rate is usually quick and can often be done online. In most cases, you can:

• Log in to your retirement plan website and look for the “contribution” or “deferral” section to update your percentage.
• Or, if you prefer, contact HR or payroll and ask how to adjust your 401(k) contribution before year‑end.

Don’t forget, payroll needs a little lead time to process any changes. Acting sooner in December gives you the best chance to have your updated contributions count for this year.

A quick reminder

Everyone’s finances are unique, so choose a contribution level that matches your budget and your goals. If you’re unsure what’s right for you, a financial professional or tax advisor can help you make the best decision for your situation. The bottom line: if you want this year’s contributions to count, now’s the time to log in, review, and make those final tweaks before December 31.

Disclosure

This article is for informational and educational purposes only and is not intended as individualized investment, tax, or legal advice. Readers should consult a qualified financial professional or tax advisor regarding their specific circumstances and retirement plan options. All 401(k) contribution limits, deadlines, and rules referenced are subject to change based on future IRS guidance and legislation, and plan documents may contain additional provisions or restrictions. Past performance or tax treatment of retirement contributions does not guarantee future results, and investing in a 401(k) involves risk, including possible loss of principal. References to employer plans, provider practices, and deadlines are general in nature and may not apply to every plan; participants should review their summary plan description and confirm details with their HR department, plan sponsor, or recordkeeper.​

Nothing in this material creates a fiduciary relationship or should be construed as a recommendation to make, increase, decrease, or cease any particular 401(k) contribution or investment. Any examples are hypothetical and are not guarantees of future outcomes. Third-party sources are believed to be reliable but are not independently verified, and no representation is made as to their accuracy or completeness. Tax advantages and eligibility for catch-up or employer contributions depend on individual tax status, income, and plan rules.​

Sources:
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits​
https://carry.com/learn/401k-contribution-limits-deadlines​
https://www.investopedia.com/ask/answers/06/salarydeferral401(k).asp[3]
https://www.employeefiduciary.com/blog/401k-contribution-deadlines-you-dont-want-to-miss​
https://irahelp.com/2025-year-end-retirement-account-deadlines/​

‍