A 401(k) fund tends to be a passive piece of an employee’s retirement plan—automatic contributions, company match, and occasional check-ins. But if you haven’t reviewed your plan recently, you might be missing out on some newer features that can significantly enhance your long-term savings. Below are some lesser-known 401(k) perks worth exploring.

Expanded Catch-Up Contributions

If you’re in the position of playing catch-up with your retirement fund, there’s good news. Thanks to a provision in the SECURE Act 2.0, workers aged 60 to 63 can contribute an additional $11,250 to their 401(k) annually, in addition to the standard catch-up limit for those over 50. This window offers a valuable opportunity to boost savings during the final stretch of your career, especially if you started saving late or had gaps in contributions.

Streamlined Hardship Withdrawals

Early withdrawals should always be a last resort, but accessing your 401(k) in an emergency is now easier, thanks to the SECURE Act 2.0. The updated rules allow participants to self-certify their hardship without employer approval, cutting down on paperwork and making it simpler to withdraw funds when facing serious financial need, such as medical expenses, natural disasters, or other personal emergencies.

Broader Investment Options with Advisor Support

Some 401(k) plans now offer self-directed brokerage accounts (SDBAs), allowing participants to choose from a wider variety of investment options. These accounts also give participants access to financial advisors for personalized investment strategies.

Adviser services typically involve a fee, but they can offer valuable insights, especially for savers seeking to diversify beyond standard investment options.

Automatic Enrollment for New Employees

To help more people start saving earlier, the SECURE Act 2.0 mandates automatic enrollment in new 401(k) plans established after December 29, 2022. Beginning in 2025, eligible employees will be automatically enrolled at a default contribution rate—typically 3% of salary—with annual increases of 1% and capped at a maximum of 10% unless they opt out. This feature is especially helpful for younger workers or those new to the workforce. Even small, early contributions can grow substantially over time with compound interest.

Advanced Digital Planning Tools

Most 401(k) providers now offer free digital tools, like online dashboards and goal-setting features, that allow you to estimate future savings, explore different contribution scenarios, and evaluate your portfolio performance. These tools make it easier to approach retirement saving more strategically and make adjustments as your goals or income change.

Guaranteed Income Through Annuities

A provision in the SECURE Act that’s gaining attention is the ability to invest in annuities within a 401(k) plan. Annuities can convert a portion of your retirement savings into a steady income stream for the rest of your life. For retirees concerned about outliving their savings, this could be a compelling option.

Although not yet widely available, more employers are exploring this option. According to a survey by LIRMA, the annuity trade association, about 40% of plan sponsors are considering adding annuities to their retirement offerings.