We have found that many 401(k) investors do not take full advantage of the benefits of investing through employer-sponsored 401(k)s. We often meet investors who have established 401(k)s at their employer, however they either (a) never received guidance from an advisor on selecting investment options or (b) they received minimal initial guidance when setting up their 401(k) account, but have not regularly monitored the investments within their 401(k). Further, many investors who have access to a 401(k) plan at work do not bother setting up a regular contribution or maximize the amount of contributions that the IRS permits them to make each year to the 401(k). At RDM Capital, we recommend that clients maximize their contributions to their 401(k) accounts (particularly when employer matching is available), seek regular guidance on selecting investment options, and review the returns and suitability of the investment selections within the client's 401(k) at least annually.

The article below highlights the crucial steps to setting up a 401(k) at work:

3 Crucial Steps to Setting Up Your First 401(k)