Q:

How can I find out my 401(k) balance?

A:

Quick Answer

It is mandatory for a 401(k) provider to give an account holder a 401(k) statement each quarter with the current balance of the account, according to Bankrate. If the 401(k) provider also offers online access, the current balance is also available there.

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Full Answer

All employees should try to contribute as much as possible to their 401(k) accounts because it offers the twin benefits of a matching employer contribution and deferred taxes on contributions and earnings. As such, the 401(k) is a great retirement savings tool, as explained by Bloomberg.

To benefit the most from a 401(k) plan, account holders need to monitor its returns periodically. This can be done by looking at the mix of bonds and shares that it invests in. Bonds typically provide a 5 percent rate of return, while shares provide a 10 percent rate of return, as explained by Bankrate.

Another factor that can affect the rate of return on a 401(k) account is the fee paid to the fund manager, according to Kiplinger. One way for employees to maximize the returns on their 401(k) accounts is to find out the amount being paid in the form of fees and then ask the employer to shift to a lower charging fund manager if possible.

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