If you're contributing to your workplace 401(k) plan, you're already laying important groundwork for your retirement savings — but the key is to make sure you're maximizing all that work.
It can be smart to try to squeeze as much growth out of your 401(k) as possible before you're ready to retire. This way, you simply retire with more money.
Consider making these tiny adjustments to get the very most out of your 401(k).
Contribute enough to max out your employer match
Many employers automatically enroll you in a 401(k) plan from day one, but not all may have you automatically contributing enough to take full advantage of the employer match. The employer match is where your workplace contributes a certain dollar-for-dollar amount to your 401(k) for you. Think of it as free money being contributed to your retirement plan.
Employers usually match all of your contributions up to the first 3% to 6%. The more you contribute, the more they can match up to that cap.
Double check your employer's plan to make sure you know the maximum contribution match amount — then make sure you're contributing enough to take full advantage of it.
Increase your contributions by at least 1%
For 2026, employees can contribute up to $24,500 to their 401(k). Contribution limits are use-it-or-lose-it, so if you don't hit that $24,500 maximum this year, you can't just make up for it next year. The limit for catch-up contributions is higher. That's why it's important to check in with your finances and up your contributions each year, if you can.
Vanguard's "How America Saves" 2026 report found that only 14% of plan participants maxed out their contributions in 2025, the most recent data available. It may not always be easy to max out your 401(k) contributions, and an extra 1% per year may not seem like much but every dollar can go a long way, especially when your investments have 30+ years to grow.
Some employers let you opt in to automatically increase your contributions by 1% each year. Enrolling in this option lets you set it and forget it, but you can always increase your contributions at any point in the year.
Enroll in your student debt benefit
One unique workplace benefit not offered by all employers is known as a 401(k) student loan match. It's where you make your normal student loan payment and your employer contributes that same amount to your 401(k).
It's intended to make it easier for employees to pay their student loans and still contribute to their 401(k) fully. Not all employers offer this benefit and for the ones that do, they may only match your student loan payment if you don't already maximize the normal employer 401(k) match.
If your student loan payment is standing in the way of growing your retirement savings faster, this workplace perk could be a simple solution.
Invest in less conservative assets
Most employers offer standard investment options like target-date funds, but others may also offer index funds, mutual funds and ETFs. Target-date funds tend to be a more conservative investment. A Barron's analysis of Morningstar data found that between 2005 and 2024, the average annual return on a target-date fund was just 6.6%. Index funds that track the S&P 500, on the other hand, tend to return around 10% annually, though past performance is no guarantee of future results.
So, while target-date funds may be the desired asset for older employees who are nearing retirement, they may be too conservative for younger employees who are still 30 to 40 years away from retirement — and they may be killing your portfolio's growth potential.
If you have the risk appetite for more aggressive investments, you can always change your asset allocation by logging into your 401(k) plan. Of course, for advice that's more tailored to your specific circumstances and goals, be sure to work with a financial professional.
How to invest outside of your 401(k)
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If you don't have access to an employer-sponsored 401(k) plan or you're already doing everything you can to get as much value out of it as possible for the time being, consider these alternatives to saving for retirement.
Enter traditional IRAs and Roth IRAs. Companies like Fidelity and Charles Schwab are financial institutions that have been around for a long time and offer traditional and Roth IRAs with tons of investment options, including individual stocks. You may even get access to their in-house financial advising services for a small fee.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over, which includes access to unlimited 30-minute coaching calls with a Fidelity advisor and tax-loss harvesting on taxable accounts).
Bonus
None currently. Check Fidelity's promotions page for the latest offers here.
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity's mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Schwab offers courses, educational articles, videos, and webinars for investors at every level, plus advanced screeners, research tools, and market insights through the Schwab Center for Financial Research.
Terms apply.
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades; no transaction fees for over 4,000 mutual funds
- thinkorswim® trading platform offers advanced charting, strategy testing and multi-device access
- Robo-advisor Schwab Intelligent Portfolios® available with no advisory fee or commissions
- Access to on-demand advice from Schwab investment professionals
- Nearly 400 brick-and-mortar branches across the U.S. for in-person support
Cons
- $5,000 minimum required for Schwab Intelligent Portfolios® robo-advisor
- $0.65 fee per options contract
- Tax-loss harvesting only available on balances of $50,000 or more within Intelligent Portfolios®
- High cash allocation requirement in Intelligent Portfolios® may limit returns compared to competitors
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FAQs
What happens to your 401(k) when you quit your job?
When you quit your job, your 401(k) stays where it is for now but you won't be able to make additional contributions. You have a few options when it comes to figuring out what to do with your 401(k): You can roll it over into a traditional IRA, leave it where it is, receive the funds as a check or roll it into your new employer's 401(k). Not all employers allow you to roll over an old 401(k) account so this may not be a feasible option for everyone. Leaving it in the current account may incur higher management fees and sometimes after a long period of inactivity, your funds get rolled into an account with the Retirement Clearinghouse (RCH). And if you opt to have your funds cashed out, you'll have to pay income taxes and an early withdrawal penalty if you're under age 59 1/2. Rolling it over into an IRA is what many experts recommend doing.
How much can you contribute to your 401(k)?
Exact 401(k) limits can change slightly year by year but for 2026, contribution limits are $24,500 ($32,500 if you're over age 50).
How do I enroll in a 401(k) plan?
Employers often automatically enroll new employees into their 401(k) plan. But if you haven't been automatically enrolled, speak to your HR or benefits department for enrollment instructions.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every retirement savings article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of investing products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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