Your 401(k) is one of the most powerful tools for securing your financial future. The question is: Are you using it to its full potential?

Here are some strategies to help you maximize its benefits:

• Earn your employer’s match. It’s a good idea to contribute as much as you can afford to your 401(k) plan. (In 2026, you can put in up to $24,500, or $32,500 if you’re 50 or older. If your plan allows, there’s also a “super catch-up” contribution of $11,250 for people aged 60 to 63, for a total contribution limit of $35,750). At least put in enough to earn a matching contribution if one is offered. Otherwise, you’re shortchanging yourself. For example: Your employer matches 50% of your contribution up to $5,000. If put in $8,000, your employer’s 50% match is $4,000 and you’re leaving $1,000 “on the table.”

• Give your plan a raise. When your income increases, consider increasing contributions to your 401(k). When you get a bonus or a tax refund, you could use some or all of that to boost your retirement savings.

• Evaluate the Roth option. When you invest in a traditional 401(k), you contribute pre-tax dollars, lowering your taxable income that year. Your earnings grow tax-deferred and are taxed when you withdraw. If your employer offers a Roth 401(k), you contribute after-tax dollars, so your taxable income doesn’t drop that year. However, withdrawals in retirement, contributions and earnings alike, are generally taxfree. (Employer matching contributions and related earnings remain taxable.) If you expect a higher tax bracket in retirement or want to diversify tax treatment for flexibility in retirement, consider the Roth option. In 2026, the Roth option must be used for catch-up contributions if you earn more than $150,000 and you are 50 or older. Consult your tax advisor before deciding.

• Build an appropriate investment mix. You may have multiple investment options in your 401(k). The driving principle early on is growth so your plan can fund a long retirement. But growth-oriented investments are naturally riskier than fixed-income vehicles. When starting your career, you may prefer a portfolio weighted toward aggressive growth, as you have years to recover from downturns. Nearing retirement, though, consider shifting to a more conservative mix. A financial advisor can help you choose an appropriate mix at different stages, based on your risk tolerance, time horizon and goals.

• Keep your plan intact. At times, you may feel a financial pinch that leads you to consider taking out loans or early withdrawals from your 401(k). However, this can cause you to incur taxes and penalties and will likely slow the growth needed to help reach your retirement savings goals. Taking steps to prepare for unexpected expenses, such as building an emergency fund containing three to six months’ worth of living expenses, can help you avoid dipping into your 401(k). You may also be able to find other ways to access cash.

By following these steps, you can unlock the full potential of your 401(k) and position it as a cornerstone of your retirement income.

— This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC