Ready to take control of your retirement savings? Excellent! Adjusting your 401(k) contribution with Fidelity is a smart move to ensure your financial future aligns with your goals. Whether you're looking to boost your savings, manage your budget, or simply optimize your retirement strategy, this comprehensive guide will walk you through every step of the process.
How to Update Your 401(k) Contribution with Fidelity: A Step-by-Step Guide
Updating your 401(k) contribution on Fidelity's platform is generally a straightforward process. However, it's crucial to understand the implications of your changes and to ensure you're making informed decisions. Let's dive in!
Step 1: Engage with Your Fidelity Account – The Gateway to Your Future
Before you can make any changes, you need to access your Fidelity 401(k) account. Think of this as opening the door to your financial control center.
1.1 Accessing the NetBenefits Website: The primary portal for managing your employer-sponsored retirement plan with Fidelity is NetBenefits.
Open your web browser and go to
www.netbenefits.com Tip: It's always a good idea to bookmark this page for easy future access.
1.2 Logging In Securely: This is where your personal security comes into play.
Enter your Username and Password in the designated fields.
If you're a first-time user, you'll need to register for an account. Follow the on-screen prompts for new user registration, which typically involves providing your Social Security number and other identifying information to set up your credentials.
Security Note: Always ensure you are on the legitimate Fidelity NetBenefits website and be wary of phishing attempts. Look for the padlock icon in your browser's address bar and "https://" at the beginning of the URL.
Step 2: Navigating to the Contribution Section – Finding Your Financial Dial
Once you're logged in, you'll be on your personalized NetBenefits dashboard. This is where you'll find an overview of your retirement accounts.
2.1 Locating "Quick Links" or "Manage Contributions": Fidelity's interface is generally user-friendly, but exact navigation can sometimes vary slightly based on updates or your specific plan setup.
Look for a section titled "Quick Links" or a direct link such as "Manage Contributions" or "Change Contributions." These are usually prominently displayed on the main dashboard or within a menu related to your 401(k) plan.
If you can't find it: Try looking under tabs like "Accounts & Trades," "Retirement," or a similar category that pertains to your workplace savings plan. There might also be a search bar you can use.
2.2 Selecting Your 401(k) Plan: If you have multiple retirement accounts with Fidelity, make sure you select the correct 401(k) plan you wish to modify.
Step 3: Initiating the Change – The Decision Point
You're now at the point where you can tell Fidelity what you want to do.
3.1 Choosing "Contribution Amount" or "Begin Change Contributions": Once you've navigated to the correct section, you'll likely see an option to "Contribution Amount," or "Begin Change Contributions." Click on this to proceed.
3.2 Understanding Contribution Types: Your 401(k) plan might offer different contribution types. It's crucial to understand what you're changing:
Pre-Tax (Traditional) 401(k): Contributions are made before taxes are deducted from your paycheck, which lowers your current taxable income. Taxes are paid when you withdraw funds in retirement.
Roth 401(k): Contributions are made with after-tax dollars, meaning they don't reduce your current taxable income. However, qualified withdrawals in retirement are tax-free.
After-Tax 401(k): Some plans allow for additional after-tax contributions beyond the regular pre-tax/Roth limits. These contributions grow tax-deferred, and the earnings will be taxed upon withdrawal, but the principal is not. This is often used for "Mega Backdoor Roth" strategies, if your plan allows.
Employer Match: Remember that any employer match is usually a separate contribution from your own and is not directly affected by your personal contribution percentage, although your contribution may be a prerequisite for receiving the match. Always aim to contribute at least enough to get your full employer match – it's free money!
Step 4: Adjusting Your Contribution Percentage or Amount – Setting Your New Course
This is the core of the process where you input your desired changes.
4.1 Entering Your New Contribution Rate: You will typically be prompted to enter a percentage of your pay that you wish to contribute from each paycheck. Some plans might allow for a specific dollar amount, but percentage is more common.
Carefully input the new percentage. Consider your budget, financial goals, and the IRS contribution limits for the current year.
For 2025, the employee deferral limit for 401(k)s is $23,500.
If you are age 50 or older in 2025, you are eligible for an additional "catch-up" contribution of $7,500, bringing your total personal contribution limit to $31,000.
New for 2025: If you are between ages 60 and 63, and your plan allows, you may be eligible for an expanded catch-up contribution of $11,250, bringing your total to $34,750.
Important: These limits apply to your contributions only and do not include any employer contributions. The combined employee and employer contribution limit for 2025 is $70,000 (or higher for those eligible for catch-up contributions).
4.2 Specifying Contribution Type (if applicable): If your plan offers both Pre-Tax and Roth 401(k) options, you'll need to specify how your new contribution percentage should be allocated between these. For example, you might choose to contribute 5% to Pre-Tax and 3% to Roth. The total of your pre-tax and Roth contributions cannot exceed the annual IRS employee deferral limit.
4.3 Reviewing Impact on Take-Home Pay: Fidelity's system often provides a helpful estimate of how your new contribution will affect your take-home pay. Review this carefully to ensure it aligns with your financial planning.
Step 5: Review and Confirm Your Changes – The Final Check
Accuracy is key when it comes to your finances.
5.1 Thoroughly Review All Details: Before submitting, you will be presented with a summary of your requested changes. Read every line item carefully.
Verify the new contribution percentage.
Confirm the effective date of the change.
Ensure the allocation between pre-tax, Roth, or after-tax (if applicable) is correct.
5.2 Submit Your Request: Once you are completely satisfied that all information is accurate, click the "Submit" or "Confirm" button.
5.3 Save or Print Confirmation: After submission, you should receive a confirmation page or email. It is highly recommended that you save a digital copy (e.g., as a PDF) or print a physical copy of this confirmation for your records. This serves as proof of your request.
Step 6: Monitoring Your Paycheck and Account – Verifying Implementation
Your work isn't done until you confirm the changes have taken effect.
6.1 Check Your Next Paycheck: Your contribution change will typically take effect in your next payroll cycle or the one immediately following, depending on your employer's payroll schedule and when you submit the change.
When you receive your next paycheck, carefully review the deductions to ensure your 401(k) contribution reflects the new percentage or amount.
6.2 Monitor Your Fidelity Account: Log back into your Fidelity NetBenefits account after a few pay cycles to confirm that the updated contributions are being accurately reflected in your account balance and transaction history.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to updating your 401(k) contribution with Fidelity:
How to Check My Current 401(k) Contribution Rate on Fidelity?
Log in to NetBenefits, navigate to your 401(k) plan summary, and look for a section detailing your current contributions or deferral rate.
How to Find My Employer's 401(k) Match Policy on Fidelity?
Within your NetBenefits account, look for plan documents, summary plan descriptions (SPDs), or sections related to "Company Contributions" or "Employer Match" for details on your company's matching policy.
How to Change My 401(k) Contribution from Pre-Tax to Roth on Fidelity?
Follow the steps to change your contribution amount (Step 3). When prompted, specify the desired allocation between your Pre-Tax and Roth 401(k) contributions, ensuring your total doesn't exceed the IRS limit.
How to Increase My 401(k) Contribution to the Maximum Allowed by the IRS on Fidelity?
Determine the current IRS contribution limits for your age group (e.g., $23,500 for under 50 in 2025). Calculate the percentage of your pay that equates to this amount and update your contribution accordingly in the "Change Contributions" section.
How to Decrease My 401(k) Contribution on Fidelity?
Follow the same steps as increasing your contribution, but simply enter a lower percentage or amount in Step 4.
How to Stop 401(k) Contributions Temporarily on Fidelity?
Within the "Change Contributions" section, you may find an option to set your contribution percentage to 0% or to temporarily suspend contributions. Be aware of the implications, especially regarding losing out on employer match.
How to Understand the Impact of My 401(k) Contribution Change on My Take-Home Pay?
Fidelity's online system often provides an estimated impact on your net pay when you adjust your contribution percentage. Review this estimate before confirming your changes.
How to Get Help if I Have Trouble Updating My 401(k) Contribution on Fidelity?
Fidelity offers customer support via phone, online chat, or secure message. Look for "Contact Us" or "Help" links on the NetBenefits website. You can also reach out to your HR or benefits department for company-specific assistance.
How to See When My 401(k) Contribution Change Will Take Effect?
The confirmation page or email after submitting your change will usually state the effective date. If not, assume it will take effect in your next 1-2 payroll cycles, depending on your company's payroll schedule.
How to Ensure I Don't Exceed the IRS 401(k) Contribution Limits?
Fidelity's system typically has built-in checks to prevent you from exceeding the standard IRS limits. However, if you contribute to multiple 401(k) plans (e.g., from different employers), you are responsible for ensuring your total contributions across all plans do not exceed the annual IRS limits. Your employer's plan administrator or Fidelity can provide guidance.
