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For many savers, a 401(k) is a significant retirement asset, but is it enough to support you for 20 to 30 years without a paycheck?

In this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® unpack this common retirement question and explain why knowing whether you have “enough” goes far beyond just checking your account balance.

Know Your Income and Expenses

While we’re specifically talking about 401(k)s, the heart of the question is really: “Do I have enough?” “Will I be okay?” To answer those questions, you first need to know your numbers. Start by identifying your income sources: Social Security, pensions, rental income, etc. Then, figure out your monthly expenses and calculate the gap your savings will need to fill.

Understand Your Contribution Options

For 2025, the standard 401(k) employee contribution limit is $23,500. If you’re age 50 or older, you can make a catch-up contribution of an additional $7,500. There’s also a new catch-up option for individuals aged 60 to 63 who can now contribute an extra $11,250, on top of the $23,500.

Looking ahead to 2026, employees aged 50 and over who earned more than $145,000 in FICA wages will be required to make any catch-up contributions on a Roth basis. This rule raises an important planning question: Should you contribute to pre-tax or Roth accounts? The right choice depends on your current and future tax brackets as well as the financial flexibility you want in retirement.

Consider a 401(k) Rollover

Employer-sponsored 401(k)s, 403(b)s, and similar plans offer a variety of investment options, but they aren’t always aligned with your personal goals. That’s where individual retirement plans (IRAs) come in.

If you’re working and under age 59½, you can roll over funds from a previous employer’s tax-deferred plan into an IRA without triggering taxes. This move can give you access to a wider range of investment options. That said, a 401(k) rollover isn’t right for everyone — be sure to review your overall investment strategy with your advisor before making a decision.

In conclusion, to help make the most of your 401(k), it’s important to know your monthly cash flow, use tax rules as a guide, choose Roth or pre-tax contributions wisely, and avoid limiting your investment options.

Curious how your 401(k) fits into your investment strategy? Get your free Ultimate 401(k) Guide by texting “GUIDE” to 800-757-0436.