The 10-Point Annual 401k Checklist
- Employer match capture: Confirm your contribution % is at or above the threshold for full employer match. Log into HR portal and verify.
- Contribution rate vs. target: Is your rate at least 15% (including employer match)? If not, increase by 1% minimum.
- Fund expense ratios: Look up each fund. Any above 0.5% warrants consideration of lower-cost alternatives.
- Asset allocation: Does your current allocation match your target for your age? Rebalance if any class drifted 5%+ from target.
- Balance vs. benchmark: Is your balance at or above Fidelity’s milestone? (1× salary at 30, 3× at 40, 6× at 50)
- Auto-escalation enabled: Confirm auto-increase is active at 1% per year.
- Beneficiary designations: Are beneficiaries current? Do they reflect life changes (marriage, divorce, new children)?
- Old 401k plans: Do you have orphaned accounts from previous employers? Initiate rollovers to consolidate.
- Roth vs. Traditional allocation: Is your Traditional/Roth split still optimal for your current tax bracket?
- Retirement projection: Run the 401k calculator to confirm current trajectory meets your retirement income goal.
Common Items Found During Annual Checklist
Common annual checklist findings and their cost
| Issue Found | Frequency | Typical 30-Year Cost | Fix Time |
|---|---|---|---|
| Not capturing full match | 22% of workers | $150,000+ | 5 minutes to change % |
| High expense ratio funds | Very common | $80,000–$200,000 | 30 minutes to switch |
| Allocation drifted from target | Common after strong equity runs | Risk, not return | 15 minutes to rebalance |
| Outdated beneficiaries | Very common | Legal/estate cost | 10 minutes to update |
| Orphaned old 401k plans | Common | High fees on forgotten balance | 1 hour to initiate rollover |
💡The Birthday 401k Review
Set a recurring calendar event on your birthday: '30-minute 401k annual review.' Log in to every retirement account, run through the 10-item checklist above, and make any needed adjustments. This annual habit, consistently maintained, can easily add $100,000–$300,000 to your retirement balance over a career.
Run Your Annual Projection Check
Enter your current balance and contribution rate — see if you’re on track and what adjustments move the needle most.