What can be done to repair a declining balance?
The first thing to do for a declining balance in a 401k is to look closely at the investment mix. Investing too heavily in company stock can cause problems if the company should run into financial trouble. Contributions should be adjusted to make the most of the contribution limits and, if at all possible, the maximum tax-deferred contribution should be made. If this isn’t possible, at the very least, an employee should contribute enough to get the company’s matching funds.
