One common mistake is not contributing enough to your 401(k) account. It’s important to save as much as you can for retirement to ensure a secure future. Another mistake is not taking advantage of employer matching contributions, as this is essentially free money that can boost your retirement savings.

It is crucial to regularly review and adjust your 401(k) investments to ensure they align with your retirement goals and risk tolerance. Failing to do so could result in missed opportunities for growth or unnecessary risks that could impact your retirement savings.

Taking out a loan from your 401(k) can have serious consequences, such as reducing your retirement savings potential and incurring penalties if the loan is not repaid on time. It’s best to explore other options for borrowing money before tapping into your 401(k) account.

When changing jobs, you have several options for your 401(k) from your previous employer. You can leave it where it is, roll it over into your new employer’s plan, roll it over into an IRA, or cash it out. It’s important to carefully consider the pros and cons of each option before making a decision.