How to Get the Most from Your 401(k) Before Retiring in Slidell, Covington, or Mandeville
Retirement is a major milestone—and if you’re living in Slidell, Covington, or Mandeville, your 401(k) can be the cornerstone of your future financial security. But are you truly getting the most out of it?
In this guide, we’ll show you how to maximize your 401(k) before retirement in St. Tammany Parish, with strategies designed for Louisiana residents.
📍 Why Your 401(k) Strategy Matters in St. Tammany Parish
St. Tammany Parish has grown into one of Louisiana’s most desirable retirement regions. With its lower cost of living, access to quality healthcare, and vibrant community life, it’s ideal for retirees. But local factors like property taxes, insurance premiums, and income needs mean that a well-structured 401(k) plan is essential.
🔍 Step 1: Start with a 401(k) Checkup
Before making changes, take stock of where you are:
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✅ Are you maxing out contributions? For 2025, the IRS limit is $23,000 for those under 50 and $30,500 if you’re 50+ (including catch-up).
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✅ Are you getting your full employer match? It’s essentially free money.
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✅ How is your portfolio performing? Review your asset allocation—especially as you approach retirement.
Tip: Consider using a tool like Empower or Morningstar’s retirement planner to visualize your trajectory.
⏫ Step 2: Use Catch-Up Contributions to Your Advantage
If you’re 50 or older, you can contribute an additional $7,500 each year to your 401(k). That’s a powerful lever if you’re within 5–10 years of retirement.
Example:
If you’re 55 and contribute the max + catch-up for 10 years, you could grow your 401(k) by over $100,000 depending on your investment performance (assuming 6-8% average annual return).
💸 Step 3: Reduce Hidden Fees That Drain Growth
Many retirement savers unknowingly lose tens of thousands to high fund fees. Review:
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Fund expense ratios
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Administrative plan fees
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Advisory costs
Ask your plan provider or financial advisor to help you compare with low-fee index fund options or consider rolling over into an IRA with more flexibility and transparency.
🧾 Step 4: Plan Ahead for Taxes in Louisiana
While Louisiana doesn’t tax Social Security, 401(k) withdrawals are considered ordinary income. A few tips:
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Begin tax planning before RMDs (Required Minimum Distributions) start at age 73
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Consider partial Roth conversions in low-income years
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Coordinate withdrawals to avoid Medicare premium surcharges
📅 Step 5: Don’t Overlook Required Minimum Distributions (RMDs)
Starting at age 73, the IRS mandates annual withdrawals from your 401(k). If you don’t take them:
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You could face a 25% penalty on the amount you were supposed to withdraw.
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They could push you into a higher tax bracket, especially when combined with Social Security.
Start RMD planning 5–10 years before retirement, especially if you have multiple retirement accounts.
🧠 Step 6: Work With a Local Retirement Advisor
Having a trusted advisor in St. Tammany Parish gives you:
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Local knowledge of property taxes, Medicaid, and insurance planning
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In-person financial checkups
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Customized strategies that fit Louisiana laws and cost-of-living
Ask about fiduciary responsibility, fee structure, and experience with retirement transitions.
🔄 Step 7: Coordinate Your 401(k) with Other Retirement Assets
Don’t isolate your 401(k). Sync it with:
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Traditional/Roth IRAs
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Pensions or annuities
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Health savings accounts (HSAs)
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Social Security timing
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Life insurance or long-term care strategies
The goal: Create predictable income streams that keep you comfortable and tax-efficient.
✅ Conclusion: Your Next Steps Toward Retirement Readiness
Retirement in St. Tammany Parish can be a dream come true—with the right planning. Start by maximizing your 401(k), optimizing tax strategies, and working with a local advisor who understands your unique needs.
🎯 Ready to take control of your retirement future?
Book a free consultation with our retirement planning team in Slidell, Covington, or Mandeville today.