Coming into 2025 means good news for those saving for retirement. While it may seem like the future is uncertain for those who have few savings for retirement, help is on the way via the Internal Revenue Service changing some of the contributions to 401(k)s and other retirement plans for those who are closer to leaving the workforce.

In 2024, the maximum contribution limit for 401(k)s is $23,000 or $30,500 if you’re 50 or older, but they will increase in 2025. And while this sounds like a great opportunity for workers, most of them cannot afford to max out these contributions, let alone save more. So, how can you make your contributions matter more?

1. Claim as much of your 2024 401(k) match as possible

Most employers offer a 401(k) match, and claiming it is key to be able to max out your plan. With only a couple of months left in 2024 there is not much time left to ensure that your contributions are as high as can be.

Check your savings and your expenses for these final months of the year and talk to your company’s HR department to see how much money there is left on the table. Figure out how much additional money you can contribute and thus get matched and attempt to top up your plan.

This advice only works if you have been in your company long enough to have a vested plan (you would not lose your contributions if you left the company). Otherwise, you might be better off investing your money in a personal IRA account, which would give you more control over the money that you put in and the fees associated with the account.

2. Look for opportunities to reduce your fees

The fees are a real problem that most investment accounts come with. The administrative fees your plan charges are not usually negotiable, but the investment fees can be, so it is important to have them under control to make the most of the money you invest.

Think of them this way, if you have a 1% expense ratio, you pay $1 to the fund manager per year for every $100 you have invested in the fund, so keeping them as low as possible is important. If your current fund does not allow for this, think about changing your portfolio around to a more affordable one. This way you will have more money go into your savings in a time when every dollar counts.

3. Plan your strategy for 2025

This may be the most important step considering there are only a couple of months left in 2024. Look at your entire portfolio and see which areas are underserved and which areas undercut you.

Evaluate your employer matched accounts like 401(k)s and see what it would take for you to get the entire match and review your budget to make it happen. A contribution split over twelve months is easier to manage than a bulk contribution at the end of the year.

Look at your other accounts like Roth 401(k) and IRAs to see where your contributions are costing you too much money and where you could contribute more due to tax breaks and other advantages that they may have, this way you can make the most of your money when the time to claim the funds finally comes.

Tax deferred accounts may seem like a good idea (and for many they are as they allow for more money to go into them), but you may consider paying your taxes now so that it does not become a burden once you are retired and claim the funds.

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