Recent data underscores the need for additional planning:
- Only 14% of 401(k) participants maxed out their 2024 contributions ($23,000 limit, rising to $23,500 in 2025), leaving ~11.2 million working Americans (out of 80 million participants) with untapped potential.
➡️JUST ANNOUNCED➡️2026 Contribution Limits: The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $24,500, up from $23,500 for 2025. - Average employee deferral rates did hit a record 7.7% of pay, but a timely conversation could help your clients bridge the gap to the recommended 12–15% savings rate.
Beyond contributions, guidance for clients toward personalization by transitioning assets from their core 401(k) or 403(b) plan account to a Self-Directed Brokerage Account (SDBA) within their plan allows for advice and additional choices that align with their unique risk tolerance and objectives. With 78% of plan assets already in equities and target-date funds dominating (71% of allocations), an SDBA shift enables customized diversification that could enhance long-term returns.
Commentary offered in this blog is for informational and educational purposes only. Opinions and forecasts regarding markets, securities, products, portfolios, or holdings are given as of the date provided and are subject to change at any time. No offer to sell, solicitation, or recommendation of any security or investment product is intended. Any expressions or opinions reflect the views of the author and are not necessarily those of TPFG or its affiliates. TPFG does not provide tax or legal advice. Investors should consult their financial, tax or legal professionals before investing. Past performance is not a guarantee of future results. Certain information and data may be supplied by unaffiliated third parties as sourced. Although the author believes the information is reliable, we cannot warrant the accuracy, timeliness or suitability of the information or materials offered by third party sources.
For Informational Purposes Only
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