As the year comes to a close, businesses are busy planning budgets, setting goals, and preparing for the year ahead. But there's one important area that shouldn't get overlooked: your company's 401(k) retirement plan.

For business owners and HR professionals, the end of the year is an ideal time to evaluate whether your retirement plan is working effectively for both your employees and your organization.

A well-managed 401(k) plan can be a valuable employee benefit, helping attract and retain talent while supporting employees' long-term financial well-being. But is your current plan still meeting your company's needs?

Before heading into 2027, here are eight things every business should review.

Your Year-End 401(k) Plan Checklist

1. Review Your Plan's Fees and Expenses

When was the last time you reviewed what your company is paying to maintain its 401(k) plan?

Administrative fees, investment expenses, and recordkeeping costs can add up. Reviewing these expenses annually can help determine whether your plan remains competitively priced and whether you're getting the level of service your business deserves.

Ask yourself: Are our plan fees reasonable and competitive for the services we're receiving?

2. Evaluate Your Investment Options

Your employees rely on the investment options available through your company's retirement plan. Take time to review the investment lineup and determine whether it continues to offer an appropriate range of choices.

Consider whether your current investment options are being monitored regularly and whether they align with the needs of your employee population.

3. Review Employee Participation Rates

A retirement plan is only valuable if employees are taking advantage of it.

Look at your participation rates and consider:

  • What percentage of eligible employees are contributing?
  • Are employees contributing enough to receive the full employer match?
  • Are newer employees enrolling?
  • Are there opportunities to improve employee education?

Low participation may indicate that employees need more information, guidance, or encouragement to take advantage of the benefit.

4. Evaluate Your Employer Matching Contributions

Your company match is an important part of your overall employee benefits package.

Review your current matching structure and determine whether it remains affordable, competitive, and aligned with your business goals.

It's also a good opportunity to evaluate whether your match is helping encourage employee participation and long-term savings.

5. Check Your Plan's Compliance and Testing

401(k) plans come with ongoing administrative and regulatory responsibilities.

Before the new year, connect with your plan administrator and financial advisor to review compliance requirements, annual nondiscrimination testing, required notices, contribution limits, and any upcoming regulatory changes.

Make sure your business has a clear understanding of upcoming deadlines and responsibilities.

6. Review Your Plan Documents and Employee Communications

Are your employees receiving clear information about their retirement benefits?

Review your enrollment materials, plan documents, employee communications, and educational resources. Make sure information is current and easy to understand.

Consider whether additional employee education sessions or retirement planning resources could help employees feel more confident about their financial futures.

7. Evaluate Your Current 401(k) Provider

Your retirement plan provider should be a resource, not just another vendor.

Consider the level of support your business receives throughout the year. Are questions answered promptly? Is reporting easy to understand? Are you receiving proactive recommendations and guidance?

If your company is doing all the work to manage its retirement plan, it may be time to evaluate whether your current provider is delivering enough value.

8. Set Your 401(k) Goals for 2027

Finally, look ahead.

Think about what you want your retirement plan to accomplish in the coming year. This could include improving employee participation, reviewing plan costs, adding education opportunities, or making the plan easier to manage.

Establishing clear goals now can help make your retirement plan a more effective part of your employee benefits strategy.

Make Your 401(k) Plan Part of Your 2027 Business Strategy

Your company's 401(k) plan is more than a retirement benefit. It's an important investment in your employees and reflects how your organization supports its workforce.

Taking time to review your plan before the new year can uncover opportunities to reduce unnecessary expenses, improve employee participation, and ensure your retirement benefits work as hard as they should.

At Radius Wealth Management, we help businesses evaluate, manage, and optimize their 401(k) retirement plans. Our goal is to simplify plan management, help businesses make informed decisions, and create better retirement plan experiences for their employees.

Is your company's 401(k) plan ready for 2027?

Let's start the conversation.

Contact Radius Wealth Management to schedule a review of your company's retirement plan.