• Have your goals or objectives changed? Most people use their 401(k) plan to fund retirement, although it can also be used for other things. Take time to reassess your goals and objectives, which can impact how much you contribute and how you invest those contributions. Calculate how much you will need at retirement as well as how much you should save annually to meet that goal.

• Are you contributing as much as you can to the plan? Look for ways to increase your contribution rate. One strategy is to allocate any salary increases to your 401(k) plan immediately, before you get used to the money and find ways to spend it. At a minimum, make sure you are contributing enough to take full advantage of any matching contributions made by your employer. In 2006, the maximum contribution to a 401(k) plan is $15,000 plus an additional $5,000 catch-up contribution, if permitted by the plan, for individuals age 50 and older.

• Are the assets in your 401(k) plan properly allocated? Some of the more common mistakes made when investing 401(k) assets include allocating too much to conservative investments, not diversifying among several investment vehicles, and investing too much in an employer’s stock. Saving for retirement typically encompasses a long time frame, so make investment choices that reflect that time period. For many, that means that a significant portion of their assets should be invested in growth vehicles.

• Do your investments need to be rebalanced? Use this review to ensure your allocation still makes sense. Also review the performance of individual investments, comparing the performance to appropriate benchmarks. You shouldn’t select your investments once and then just ignore the plan. Review your allocation annually to make sure it is close to your desired allocation. If not, adjust your holdings to get your allocation back in line. Selling investments within your 401(k) plan does not generate tax liabilities, so you can make these changes without any tax ramifications.

• Are you satisfied with the features of your 401(k) plan? If there are aspects of your plan you’re not happy with, such as too few investment choices or no employer matching, take this opportunity to let your employer know.

Managed properly, your 401(k) plan can play a significant role in helping to fund your retirement.