As we enter the second quarter of the year, April is a great time to review your retirement savings strategy and ensure you’re making the most of your contributions. Whether you are actively working toward retirement or already planning your income strategy for the future, making informed decisions now can significantly impact your financial success.
With fluctuating market conditions and evolving financial goals, revisiting your retirement accounts—including 401(k)s, IRAs, and other tax-advantaged savings plans—can help you stay on track toward long-term financial security. Small adjustments today could contribute to substantial benefits down the road.
Why Adjusting Retirement Contributions Matters
Many individuals set their retirement contributions at the beginning of the year and forget to revisit them. However, changes in income, tax laws, and employer benefits can influence the effectiveness of your savings strategy. By reviewing your contributions in April, you can assess whether you’re taking full advantage of employer matching programs, tax-efficient savings options, and market opportunities.
If you have received a salary increase or bonus, consider allocating a portion toward your retirement savings. In 2025, you can contribute up to $23,500 to a 401(k), with a $7,500 catch-up for those 50 and older, totaling $30,500. If you’re between 60 and 63 years old, you may be eligible for an enhanced catch-up of $11,250, bringing the total to $34,750.
Employer-sponsored plans, like 401(k)s, often offer matching contributions. Therefore, increasing your contributions can lead to additional funds from your employer—essentially free money that boosts your long-term savings.
Making the Most of Tax-Advantaged Retirement Accounts
Retirement accounts such as 401(k)s, Traditional IRAs, and Roth IRAs offer tax benefits that can help grow your investments more efficiently. Depending on your income level and financial situation, you may benefit from contributing to a Roth IRA, which provides tax-free withdrawals during retirement, or a Traditional IRA, which may offer opportunities for tax deductions today.
In 2025, the IRA contribution limit is $7,000, with a $1,000 catch-up available for individuals 50 and older, bringing their limit to $8,000. Reviewing your contribution levels early ensures you are maximizing these tax-advantaged opportunities.
Adapting to Market Conditions and Financial Goals
Economic conditions and market fluctuations should be considered when evaluating your retirement savings strategy. If interest rates or inflation levels have changed, adjusting your asset allocation and contributions may help maintain the purchasing power of your retirement savings.
Long-term investing is about consistency and adaptability. If your risk tolerance or retirement timeline has shifted, now may be the time to review your investment mix. A well-diversified portfolio can help you withstand market volatility and support your long-term financial stability.
How Ballentine Capital Advisors Can Help
At Ballentine Capital Advisors, we work closely with our clients to create retirement strategies tailored to their financial goals. Reviewing your retirement contributions regularly ensures that you are on track to maximize your savings potential. If you have questions about optimizing your retirement plan or adjusting your contribution levels, we are here to help!
Taking a proactive approach now can strengthen your financial future. Give us a call to discuss your retirement savings strategy and explore opportunities for lasting success.
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This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
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