Is your financial future on your mind? Are you looking to optimize your retirement savings and take control of your 401(k) contributions with Fidelity? You've come to the right place! Changing your 401(k) contribution is a powerful way to accelerate your retirement savings, adjust to life's financial shifts, or simply ensure you're maximizing your employer match. This comprehensive guide will walk you through every step of modifying your 401(k) contributions on Fidelity's platform, empowering you to make informed decisions for your financial well-being.
Navigating Your Financial Future: A Step-by-Step Guide to Changing Your 401(k) Contribution with Fidelity
Changing your 401(k) contribution is usually a straightforward process online, but it's crucial to follow each step carefully to ensure your desired changes are accurately reflected. Let's dive in!
Step 1: Accessing Your Fidelity NetBenefits Account
This is where your journey begins! You'll need to log in to your Fidelity NetBenefits account, which is typically where your employer-sponsored retirement plan is managed.
1.1 Log In to NetBenefits
Open your web browser and navigate to the Fidelity NetBenefits website:
1.2 Enter Your Credentials
You'll be prompted to enter your username and password. If you've forgotten them, use the "Forgot username" or "Forgot password" links to recover access. Remember to keep your login information secure!
Step 2: Locating Your 401(k) Plan and Contribution Settings
Once you're logged in, you'll be on your personalized NetBenefits dashboard. This is your central hub for managing your retirement accounts.
2.1 Find Your 401(k) Plan
On the dashboard, you should see a summary of your various Fidelity accounts. Locate your 401(k) plan. It might be listed under a heading like "My Retirement Accounts" or similar. Click on the link for your 401(k) plan to access its specific details.
2.2 Navigate to Contribution Settings
Within your 401(k) plan overview, look for options related to contributions. This might be labeled:
"Manage Contributions"
"Contribution Amount"
"Change Contributions"
"Payroll Deductions"
The exact wording can vary slightly depending on your employer's specific plan setup. If you're having trouble finding it, look for a "Quick Links" section, as this often contains a direct link to contribution adjustments.
Step 3: Initiating the Contribution Change
Now that you've found the right section, it's time to tell Fidelity what you want to do.
3.1 Select "Begin Change Contributions"
You'll typically see a button or link that says "Begin Change Contributions" or something similar. Click on this to start the process of modifying your deferrals.
3.2 Understand Contribution Types
Your 401(k) plan might allow for different types of contributions:
Pre-Tax 401(k): Contributions made before taxes are deducted from your paycheck, reducing your current taxable income.
Roth 401(k): Contributions made with after-tax dollars, meaning qualified withdrawals in retirement are tax-free.
After-Tax 401(k): Some plans allow for additional after-tax contributions beyond the standard pre-tax or Roth limits. These can sometimes be converted to a Roth IRA (known as a "mega backdoor Roth"). Check your plan's specifics.
You'll usually have separate fields or percentages to adjust for each of these contribution types.
Step 4: Specifying Your New Contribution Amount or Percentage
This is the core of the change. You'll input your desired new contribution.
4.1 Adjust Regular Pay and/or Bonus Pay Contributions
You'll likely see fields to enter a percentage or dollar amount for your contributions from your regular pay and possibly from any bonus pay.
To increase your contribution: Enter a higher percentage or dollar amount.
To decrease your contribution: Enter a lower percentage or dollar amount.
To stop contributions temporarily: You might be able to enter 0% or a similar option, but be mindful of your employer match! Missing out on an employer match is like leaving free money on the table.
4.2 Consider Your Financial Goals
Before simply typing in a new number, take a moment to consider:
Are you maximizing your employer match? This is often the most important factor. If your employer matches a certain percentage of your contributions, aim to contribute at least that amount.
What are your current financial needs? Can you comfortably afford to increase your contributions without straining your budget?
What are your long-term retirement goals? Higher contributions now can lead to significantly more savings down the road, thanks to compounding.
Are you approaching the IRS contribution limits for 2025?
Employee 401(k) Contributions: $23,500
Age 50+ Catch-Up Contributions: Additional $7,500 (total $31,000)
Age 60-63 Catch-Up Contributions (if plan allows): Additional $11,250 (total $34,750)
Combined Employee and Employer Contributions: $70,000
These limits are for 2025 and are subject to change annually by the IRS.
Step 5: Reviewing and Confirming Your Changes
Accuracy is key! Before finalizing, double-check everything.
5.1 Review Your Elections
After inputting your desired changes, you'll be directed to a review page. Carefully examine all the details:
New contribution percentages/amounts
Effective date of the change
Impact on your take-home pay (Fidelity often provides an estimate)
5.2 Submit Your Changes
If everything looks correct and you're satisfied with your new elections, click "Submit" or "Confirm" to finalize the process.
5.3 Save Confirmation
It's always a good practice to print or save a copy of your confirmation page for your records. This serves as proof of your request and the changes made.
Step 6: Verifying Your Changes
While the online system usually processes changes promptly, it's wise to verify them.
6.1 Check Your Next Pay Stub
The most direct way to confirm your changes is to check your next few pay stubs. The deductions for your 401(k) should reflect your new contribution amount or percentage.
6.2 Monitor Your Fidelity NetBenefits Account
Log back into your NetBenefits account after a pay cycle or two to ensure the changes are accurately reflected in your account activity and contribution history.
Important Considerations When Changing Your 401(k) Contributions
Employer Plan Rules: While Fidelity facilitates the change, your employer's specific 401(k) plan rules dictate when and how often you can make contribution changes. Most plans allow changes at any time, but some may limit adjustments to specific periods (e.g., once per quarter). If you have questions, consult your HR department or plan administrator.
Impact on Take-Home Pay: Increasing your 401(k) contributions (especially pre-tax) will reduce your current take-home pay, but it also lowers your taxable income. Be sure to budget accordingly.
Investment Allocation: Changing your contribution amount is distinct from changing how your contributions are invested. This guide focuses solely on the contribution amount. You may also want to review your investment allocation regularly to ensure it aligns with your risk tolerance and financial goals.
Financial Advisor: If you're unsure about the best contribution strategy for your personal circumstances, consider consulting a qualified financial advisor. They can provide personalized guidance.
10 Related FAQ Questions
How to check my current 401(k) contribution percentage on Fidelity?
You can check your current contribution percentage by logging into your Fidelity NetBenefits account, navigating to your 401(k) plan, and looking for a section like "Contributions" or "Manage Contributions."
How to know if my employer offers a 401(k) match on Fidelity?
Information about your employer's 401(k) match is typically found within your plan details on Fidelity NetBenefits, often under sections like "Plan Information" or "Employer Contributions." You can also ask your HR department.
How to find the IRS 401(k) contribution limits for the current year on Fidelity?
Fidelity often provides links to IRS contribution limits within the "Resources" or "Education" sections of NetBenefits. You can also search "IRS 401(k) limits [year]" online.
How to change my 401(k) investment allocation on Fidelity?
Changing investment allocation is separate from contributions. On NetBenefits, look for options like "Change Investments," "Manage Investments," or "Asset Allocation" within your 401(k) plan.
How to make Roth 401(k) contributions through Fidelity?
If your employer's plan offers a Roth 401(k) option, you will see it as a separate choice when adjusting your contribution percentages on the "Manage Contributions" page in NetBenefits.
How to stop 401(k) contributions temporarily on Fidelity?
To stop contributions, you would typically set your contribution percentage to 0% in the "Manage Contributions" section of your Fidelity NetBenefits account. Be aware of the impact on your employer match.
How to ensure my 401(k) contribution changes are effective immediately?
Contribution changes typically take effect with the next payroll cycle after you submit them. The effective date should be displayed on your confirmation page.
How to contact Fidelity customer service for 401(k) assistance?
You can find Fidelity's customer service contact information (phone numbers and chat options) by logging into your NetBenefits account and looking for "Contact Us" or "Help" links.
How to understand the tax implications of pre-tax versus Roth 401(k) contributions?
Pre-tax contributions reduce your current taxable income but are taxed in retirement. Roth contributions are made with after-tax money, but qualified withdrawals in retirement are tax-free. Fidelity's educational resources or a tax advisor can provide more detail.
How to confirm if my changed 401(k) contributions have been applied to my paycheck?
Check your pay stub from your employer for the pay periods following your contribution change. The 401(k) deduction amount should reflect your updated percentage or dollar amount.
