Wells Fargo 401k Match
Match Wells Fargo employs over 27,000 people in the Charlotte area. As a financial advisor in Charlotte—and the husband of a Wells Fargo employee—I’m acutely aware of the company’s employee benefits package and its nuances. In this updated guide for 2025, I’ll walk you through optimizing your benefits to ensure you’re maximizing what Wells Fargo offers, with a particular focus on the new retirement savings opportunities available this year.
Maximize Your 401(k) Match: The Foundation of Your Retirement Strategy Wells Fargo matches 401(k) contributions dollar for dollar, up to 6%.
This means that if you make $100,000 annually, you can contribute $6,000, and Wells Fargo will contribute an additional $6,000—providing an immediate 100% return on your investment. If you haven’t already, adjust your paycheck withholdings to contribute enough to get the full employer match. You won’t find this kind of guaranteed return anywhere else in the market.
Take Advantage of Increased 401(k) Contribution Limits for 2025
The IRS has increased the standard 401(k) contribution limit to $23,500 for 2025, a $500 increase from the 2024 limit. Maxing out your 401(k) is one of the most effective ways to reduce your taxable income while boosting your retirement savings.
Catch-Up and New Super Catch-Up Contributions
If you’re age 50 or older, you can make an additional $7,500 in catch-up contributions beyond the standard limit.
New for 2025: If you’re between ages 60-63, you can take advantage of the “Super Catch-Up” provision, allowing up to $11,250 in additional contributions (instead of the standard $7,500). This significant increase creates an exceptional opportunity to accelerate your retirement savings during these key years. Many employees forget to increase their contribution limits when they become eligible for these catch-up provisions. Set a reminder if you’re approaching a milestone birthday that qualifies you for these enhanced contribution limits.
Understanding Vesting and Portability
While your personal contributions to your 401(k) are always 100% vested, employer contributions may be subject to a vesting schedule. Be sure you understand Wells Fargo’s vesting requirements to maximize your benefits, particularly if you’re considering changing positions within or outside the company. If you leave Wells Fargo, your 401(k) assets are portable. You can roll them over to a new employer’s plan or an IRA, maintaining the tax-advantaged status of your retirement savings.
Diversify Your Wells Fargo 401(k)
Holdings Up until 2024, Wells Fargo automatically invested your 401(k) match and optional profit sharing in the Wells Fargo ESOP Fund or the Wells Fargo Non-ESOP Fund. This is essentially Wells Fargo stock, which is susceptible to market volatility like any individual stock investment. If you’re holding too much Wells Fargo stock, consider diversifying. This strategy mitigates your risk and ensures your retirement savings aren’t overly dependent on a single company’s performance. Remember that your financial wellbeing is already tied to Wells Fargo through your employment—diversifying your investments provides important protection.
Explore Roth Contribution Options
Roth accounts can significantly help minimize taxes and maximize retirement savings. Depending on your financial situation, contributing to your company’s Roth 401(k) or implementing a backdoor Roth IRA strategy may be advantageous. This decision requires careful consideration of your current tax bracket, expected future tax rates, and overall financial plan. At Calamita Wealth Management, we help evaluate whether Roth contributions make sense for your situation and guide you through executing strategies like backdoor Roth IRAs, which require precise timing to avoid unnecessary taxes.
Get Familiar with the Empower 401(k) Platform
Wells Fargo has completed migrating employees to the Empower 401(k) platform. Now is an excellent time to:
- Familiarize yourself with the Empower interface and tools
- Review the new investment options available to you
- Update your asset allocation based on your retirement timeline and risk tolerance
- Set up automatic contribution increases to align with your financial goals
The platform change offers a perfect opportunity to reevaluate your retirement strategy and make adjustments that reflect your current financial situation.
Update Your Beneficiaries
Many people forget to update the primary and contingent beneficiaries on their 401(k) plans. We’ve seen numerous instances where clients thought they had the correct beneficiaries listed, only to discover discrepancies upon receiving printed beneficiary confirmation statements. Request printed beneficiary confirmation statements for all your accounts to verify you’ve listed the correct primary and contingent beneficiaries. This simple step can prevent significant complications for your loved ones in the future.
Maximize Your HSA Contributions
If you have a high-deductible health insurance plan, you’re eligible for a Health Savings Account (HSA). HSAs offer triple tax advantages: tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. For 2025, you can contribute up to $4,300 for self-only coverage and $8,550 for family coverage, reflecting increases of $150 and $250, respectively, from 2024. Wells Fargo also offers employer HSA matching when you and your spouse complete specific wellness activities in your account dashboard. These activities typically include health assessments, preventive screenings, and wellness challenges.
Understanding HDHP Requirements for HSA Eligibility
For 2025, to be eligible for an HSA, your high-deductible health plan must have:
- A minimum deductible of $1,600 for self-only coverage or $3,200 for family coverage
- Maximum out-of-pocket expenses of $8,050 for self-only coverage or $16,100 for family coverage Verify your plan meets these requirements to ensure HSA eligibility.
Take Advantage of Wells Fargo’s Comprehensive Benefits Package
Beyond retirement and health savings, Wells Fargo offers a robust benefits package including:
- Medical, dental, and vision coverage
- Coverage for spouses, domestic partners, and children up to age 26
- Life and disability insurance
- Employee assistance programs
- Paid time off and parental leave
- Tuition reimbursement
- Wellness programs
Review these benefits annually during open enrollment to ensure you’re selecting options that best suit your needs and those of your family.
Optimize Your Long-Term Incentive Compensation Plan
Suppose you’re a highly compensated Wells Fargo employee. In that case, you may have access to a long-term incentive compensation plan, which might include:
- Stock options
- Stock appreciation rights
- Restricted stock and restricted share rights
- Performance shares and performance units
- Stock awards
Working with an experienced financial advisor can help you develop a multi-year strategy to: Diversify out of company stock strategically Mitigate investment risk Understand the terms of each award and its vesting schedule Plan for potential tax consequences Minimize taxes through proper timing of exercises and sales For 2025, Wells Fargo has maintained its core compensation grid, but has increased performance expectations for lower producers and adjusted payout rates for certain account sizes. If you’re an advisor or in a commission-based role, understanding these changes is crucial for maximizing your compensation.
2025 Key Limits for Wells Fargo Employees
| Benefit Type | 2024 Limit | 2025 Limit | Notable Changes |
| 401(k) Employee Contribution | $23,000 | $23,500 | Increased by $500 |
| 401(k) Catch-Up (50+) | $7,500 | $7,500 | No change |
| 401(k) Super Catch-Up (60–63) | N/A | $11,250 | New, increased for ages 60–63 |
| HSA (Self-Only) | $4,150 | $4,300 | Increased by $150 |
| HSA (Family) | $8,300 | $8,550 | Increased by $250 |
Tax Planning Considerations for 2025
With new contribution limits and plan changes, consider scheduling a review with a financial advisor to:
- Optimize your tax strategy based on the latest retirement plan limits
- Evaluate the tax implications of your compensation package
- Plan for vesting events and potential concentrated stock positions
- Assess the impact of any Wells Fargo compensation changes on your overall financial plan
- Develop a comprehensive strategy that aligns with your long-term financial goals
How We Help Wells Fargo Employees
At Calamita Wealth Management, many of our clients are Wells Fargo employees whom we’ve helped maximize and optimize their benefits. (As I previously mentioned, my wife also works at Wells Fargo, so I’m keenly aware of your plan options.) For more information about Wells Fargo retirement, check out our FREE 7-day email course. If you’d like professional help ensuring you get the most out of all your benefits, schedule an introductory phone call using our online calendar or reach out to us at (704) 276-7325 or todd@calamitawealth.com.
Todd Calamita is the founder and managing principal of Calamita Wealth Management, an independent, fee-only wealth management company based in Charlotte, NC, serving clients locally and nationwide. The company focuses on providing wealth management solutions to affluent individuals aged 50 and above, as well as their families. Todd has over 20 years of experience in the financial services industry and is passionate about helping people lead better lives by designing and implementing customized financial plans that bring clarity and confidence.
Todd is a CERTIFIED FINANCIAL PLANNER™(CFP®) and CERTIFIED DIVORCE FINANCIAL ANALYST® (CDFA®) and holds a Bachelor of Business Administration from Ohio University and a Master of Business Administration from the Weatherhead School of Management at Case Western Reserve University. He has authored a book, Plan Smart: Conquering 10 Common Money Traps, as well as numerous articles on a wide range of personal finance topics, from taxes to retirement accounts. He has also been featured in a Financial Boot Camp TV series as a volunteer, showing people how to make smart decisions with their money. When he’s not working, you can find Todd spending time with his wife, Teresa, and their two sons, Colin and Cameron. He enjoys rock climbing, swimming, and traveling, and he has a black belt in Tang Soo Do, a Korean martial art. To learn more about Todd, connect with him on LinkedIn.
Sources
- charlotteobserver.com
- shrm.org (1)
- shrm.org (2)
