Hey there! Ready to take charge of your financial future? Understanding and managing your 401(k) contributions is one of the most powerful steps you can take toward a secure retirement. If your company uses Workday for HR and benefits, changing your 401(k) contribution is often a straightforward process. This comprehensive guide will walk you through every step you need to know, from logging in to confirming your changes, and even address some common questions you might have. Let's get started on optimizing your retirement savings!
Mastering Your Retirement: How to Change Your 401(k) Contribution in Workday
Your 401(k) is a cornerstone of your retirement planning. It's a powerful, tax-advantaged savings vehicle offered by many employers. Regularly reviewing and adjusting your contributions can significantly impact your long-term wealth accumulation. Whether you're aiming to maximize your employer match, take advantage of higher contribution limits, or simply adjust to a new financial situation, Workday makes the process relatively simple.
Before we dive into the step-by-step guide, let's briefly touch upon what a 401(k) is and the types of contributions you might encounter.
Understanding Your 401(k) Basics
A 401(k) plan is an employer-sponsored, defined-contribution retirement account that allows you to save for retirement in a tax-efficient manner. You contribute a portion of your paycheck, and these funds are then invested. Many employers also offer a matching contribution, essentially giving you "free money" towards your retirement.
There are generally two main types of 401(k) contributions:
Pre-tax (Traditional) 401(k): Contributions are made before taxes are deducted from your paycheck. This lowers your current taxable income, providing an immediate tax benefit. However, withdrawals in retirement will be subject to income tax. This is often beneficial if you expect to be in a lower tax bracket in retirement than you are now.
Roth 401(k): Contributions are made with after-tax dollars. This means you don't get an immediate tax deduction, but qualified withdrawals in retirement (after age 59½ and meeting certain conditions) are completely tax-free, including all earnings. This can be advantageous if you expect to be in a higher tax bracket in retirement.
Most 401(k) plans allow you to contribute to either a pre-tax or Roth 401(k), or even a combination of both, up to the annual IRS limits. For 2025, the standard 401(k) contribution limit for employees is $23,500. If you are age 50 or older, you can make an additional "catch-up" contribution of $7,500, bringing your total to $31,000. For those aged 60, 61, 62, or 63, a higher catch-up contribution of $11,250 may apply, if your plan allows, bringing the total to $34,750.
Now, let's get to the nitty-gritty of making those changes in Workday!
Step 1: Engage and Access Workday
Ready to boost your retirement savings? The first step is to log into your Workday account. Think of Workday as your personal HR hub – it's where you manage everything from your pay stubs to your benefits.
How to get there: Open your web browser and navigate to your company's specific Workday login page. This URL is usually provided by your HR department.
Log In: Enter your username (often your employee ID or email address) and your password. If you've forgotten your password, look for the "Forgot Password" or "Need Help" link. You might also need to complete a multi-factor authentication step for added security.
Step 2: Navigate to Benefits & Pay
Once you're successfully logged into Workday, you'll see your homepage. This page is typically customized with various applications and shortcuts.
Locate the "Benefits and Pay" Application: On your Workday homepage, look for an application or icon that says "Benefits and Pay" or similar. It might be under a "Personal" or "Applications" section. Click on this application to proceed.
Alternative Navigation (if "Benefits and Pay" isn't immediately visible):
Search Bar: Workday has a powerful search bar at the top of the page. You can simply type "Benefits" or "Change Benefits" into the search bar, and Workday will suggest relevant tasks.
Menu Icon: In the top-left corner, you might see a "Menu" or "W" icon. Clicking this typically opens a navigation panel where you can find "Benefits" or "Pay."
Step 3: Initiate the Benefit Change Process
Within the "Benefits and Pay" application, you'll find various options related to your benefits.
Find "Change Benefits" or "Change Retirement Savings": Look for a task or link titled "Change Benefits," "Change Retirement Savings," or "Initiate Retirement (401K) Contribution Change." This is the key action you need to take to modify your contributions.
For some organizations, this might be under "Tasks and Reports" or "Updates & Changes."
Select the Change Reason: A dropdown menu will likely appear, asking for the "Change Reason." Choose an option like:
"Retirement Plan Changes"
"Retirement Contribution Change"
"Benefits Allowed to Change Anytime"
Select the most appropriate reason for changing your 401(k) contributions.
Enter the Benefit Event Date: This is a crucial step.
Typically, you'll enter the current date (the date you are submitting the request) or a future date for when you want the change to take effect.
Important Note: The effective date for your new elections can vary by plan. Some changes might take effect immediately if the payroll cycle isn't closed, while others might begin on the first day of the next month following your submission. Always read any accompanying instructions carefully on this screen to understand the specific timing for your plan.
Submit the Initial Request: After selecting the reason and date, click the "Submit" button. You might see a confirmation message indicating that your request has been submitted and is awaiting further action.
Step 4: Access Your Benefit Elections Task
After submitting your initial request, Workday will usually prompt you to complete the actual benefit election.
Look for the "Open" Link or Inbox Notification: A dialog box might pop up with a link to "Open" the next task (e.g., "Change Benefit Elections"). Click on this "Open" link immediately.
What if the dialog box disappears? Don't worry! You can typically find this task in your Workday Inbox. Look for a mail icon or a "My Tasks" section in the top-right corner of the page. The task will likely be named something like "Benefit Change – Retirement Plan Changes" or "Change Voluntary Retirement Savings." Click on it to continue.
"Let's Get Started": Once you open the task, you'll often see a prominent button that says "Let's Get Started." Click this to move to the detailed contribution selection screen.
Step 5: Modify Your 401(k) Contributions
This is where you make the actual changes to your contribution percentage or amount.
Identify Your Retirement Plan Cards: On this page, you'll typically see different "cards" or sections representing your retirement plans. These might include:
Employee Retirement Income Plan – Voluntary (for voluntary contributions)
Supplemental Retirement Plan (Pre-Tax)
Supplemental Retirement Plan (Roth)
Supplemental Retirement Plan Catch-Up (if you are age 50 or older)
Select "Enroll" or "Manage": For the specific 401(k) plan you wish to change (e.g., Traditional or Roth), click on "Enroll" (if you haven't contributed before or it's a new election) or "Manage" (if you're already contributing and want to change the amount).
Choose "Select" or "Waive":
To continue contributing or start a new contribution, choose the "Select" option.
If you wish to stop contributing, select "Waive."
Always click "Confirm and Continue" after making your selection.
Enter Your Contribution Amount/Percentage:
You'll be prompted to enter your desired contribution. You typically have two options:
Percentage (%): Enter the percentage of your eligible pay you want to contribute (e.g., 5%, 10%). Be careful when choosing a high percentage, as it's a percentage of your gross pay, not just the IRS maximum.
Per Paycheck Contribution ($): Enter a specific dollar amount you want deducted from each paycheck.
Consider your employer's match: If your company offers a 401(k) match, ensure your contribution is at least enough to maximize that match. This is essentially free money!
Review any Retirement Savings Instructions on the right side of the screen.
Save Your Changes: After entering your new contribution, click "Save." You should receive a confirmation that your changes have been saved for that specific plan.
Repeat for Other Plans (if applicable): If you contribute to both Pre-Tax and Roth 401(k) plans, or if you're making catch-up contributions, repeat steps 5.b to 5.e for each relevant plan.
Step 6: Review and Sign
Once you've made all your desired changes to your 401(k) contributions:
Click "Review and Sign": Look for this button, usually at the bottom of the page. This will take you to a summary of your proposed changes.
Carefully Review the Summary: Take your time to review all the details of your changes, including the Coverage Begin Date (when your modifications will become effective) and the new contribution percentages/amounts. Accuracy is key here!
Electronic Signature: Scroll to the bottom of the summary page. You'll likely see an "Electronic Signature" section.
Read the Acknowledgements: Thoroughly read any statements or acknowledgements regarding your electronic signature.
Check the "I Accept" Box: Once you've reviewed everything and agree, check the "I Accept" box.
Submit Your Request: Finally, click the "Submit" button to finalize your 401(k) contribution change.
Step 7: Confirmation and Verification
After submitting, you'll typically receive confirmation.
Success Message: Workday will usually display a "Success! You've Enrolled" or "Your Changes Have Been Submitted" message.
Confirmation Email: Many organizations also send a confirmation email to your work email address, summarizing your changes.
Verify in Payroll: It's a good practice to verify your new contribution on your next few pay stubs. Once your changes take effect, check that the correct amount or percentage is being deducted for your 401(k). If something looks incorrect, contact your HR or benefits department immediately.
Important Considerations When Changing Your 401(k) Contributions:
IRS Contribution Limits: Always be mindful of the annual IRS contribution limits. Workday usually has built-in checks, but it's good to be aware. Exceeding these limits can lead to tax complications.
Employer Match: If your employer offers a 401(k) match, ensure your new contribution percentage allows you to receive the full matching contribution. This is literally free money for your retirement!
Payroll Cycle: Understand your company's payroll cycle. Changes typically take effect with the next available payroll after your submission date.
Financial Planning: Consider consulting with a financial advisor to determine the optimal contribution strategy for your personal financial situation and retirement goals.
Life Events: Major life events (marriage, birth of a child, salary increase, new job) are excellent times to re-evaluate and potentially increase your 401(k) contributions.
Frequently Asked Questions (FAQs)
How to check my current 401(k) contribution in Workday?
To check your current 401(k) contribution, log into Workday, navigate to the "Benefits and Pay" application, and look for a "Retirement Savings" or "Current Benefits" section. Your current contribution percentage or amount should be displayed there.
How to find my company's specific Workday login page?
Your company's Workday login page URL is typically provided by your HR department during onboarding. It's often an internal link or accessible via your company's intranet. If you can't find it, contact your HR team.
How to know the 401(k) contribution limits for the current year?
The IRS announces 401(k) contribution limits annually. For 2025, the standard employee contribution limit is $23,500, with an additional $7,500 catch-up contribution for those age 50 and over (total $31,000). A higher catch-up of $11,250 might apply for ages 60-63. You can find official IRS announcements or check with your plan administrator for the most up-to-date information.
How to determine if my company offers a 401(k) match?
Information about your company's 401(k) match policy is usually found in your benefits enrollment documents, your employee handbook, or by contacting your HR or benefits department directly. It will often detail the percentage they match and any vesting schedule.
How to understand the difference between pre-tax and Roth 401(k) contributions?
Pre-tax contributions reduce your current taxable income but are taxed in retirement. Roth contributions are made with after-tax dollars, so they don't reduce current taxable income, but qualified withdrawals in retirement are tax-free. Your choice depends on your current and expected future tax brackets.
How to change my 401(k) investment elections in Workday?
While this guide focuses on contribution amounts, changing investment elections (how your 401(k) funds are invested) is typically done through your 401(k) plan provider's website (e.g., Fidelity, Vanguard, TIAA), not directly in Workday. Workday manages your payroll deductions, but the investment choices are handled by the financial institution.
How to ensure my 401(k) changes have taken effect?
The best way to ensure your changes have taken effect is to review your next few pay stubs after the effective date you selected. You should see the new deduction amount or percentage reflected in your payroll. You might also receive a confirmation from your 401(k) provider.
How to adjust my 401(k) contributions if I'm nearing retirement?
If you're nearing retirement (typically age 50 or older), you become eligible for "catch-up" contributions, allowing you to contribute more than the standard limit. This is a great way to boost your savings in your final working years. Follow the same Workday steps, looking for the "Catch-Up" plan option.
How to get help if I encounter issues changing my 401(k) in Workday?
If you face any difficulties or have questions specific to your company's Workday setup, the best resources are your HR department, your benefits administrator, or your company's dedicated Workday support team. They can provide personalized assistance.
How to decide on the best 401(k) contribution percentage for my situation?
The ideal contribution percentage varies based on individual financial goals, income, expenses, and whether you receive an employer match. A common guideline is to contribute at least enough to get the full employer match, and ideally aim for 10-15% of your income (including employer contributions) for retirement savings. Consider consulting a financial advisor for personalized advice.
