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The AT&T 401(k) savings plan: what to be doing with it right now

June 22, 2026

401(k) & Workplace Retirement Plans

AT&T employees have access to a comprehensive benefits package — a 401(k) savings plan, a defined benefit pension for many employees, and a range of other retirement programs.

But complexity cuts both ways. More benefits means more decisions, and more decisions means more chances to leave something on the table. Here’s what’s worth reviewing.

1. Are you getting the full match?

At minimum, your contribution should be high enough to capture every dollar of the AT&T employer match. Check your current contribution rate and confirm you’re capturing all of it.

2. Is your allocation still right for your stage?

Many AT&T employees set their allocations early in their career and never revisit them. As retirement gets closer, your risk profile generally changes. An allocation that suited you at 40 may be too aggressive at 55 — or, if you’re concerned about outliving your money, too conservative.

A review of your allocation, considered alongside your other retirement assets, your pension and your Social Security timeline, is worth doing periodically.

3. Understand how your pension changes the picture

For AT&T employees with a defined benefit pension, the pension changes how you might think about the 401(k). A monthly pension can act as a stable income floor, which may mean you can afford a somewhat different risk posture in your 401(k) than someone without one.

As retirement approaches, you’ll also face the pension decision itself: monthly check or lump sum. It interacts with your 401(k) rollover strategy, your Social Security timing and your overall tax picture. Considering them together generally produces a better answer than optimizing any one alone.

4. Catch-up contributions in your 50s

If you’re 50 or older, catch-up contributions let you save more each year. For 2026, the standard limit is $24,500. Employees age 50 and older can generally add $8,000, for $32,500 in total. Employees who reach age 60 through 63 during the year may be able to contribute up to $35,750 under the SECURE 2.0 enhanced catch-up, where the plan permits it. (Source: IRS Notice 2025-67.)

These are often peak earning years, which can make them a useful window to save more.

5. Have a plan for what happens when you leave

When you retire from AT&T you’ll decide what to do with your 401(k): leave it in the plan, roll it into an IRA, move it to a new employer’s plan, or take a distribution. For many AT&T retirees, rolling into a managed IRA offers a combination of investment flexibility, ongoing management and more control over taxes. Coordinating that with your pension election and Social Security timing generally matters more than any one decision on its own.

A note on our own incentives: if you roll into an IRA that we manage, we’re generally paid approximately 1% of assets per year, more than the flat monthly fee under our plan management services. That’s a conflict of interest, and we’d rather say so plainly. When we advise you on your plan or IRA we act as a fiduciary under ERISA, and we’ll walk you through every option, including the ones that pay us less.

Scarborough Capital Management is not affiliated with AT&T and this article does not imply endorsement by AT&T or any of its subsidiaries. AT&T, and all related plan and product names, are trademarks of their respective owners. Advisory services offered through Scarborough Capital Management, a federally registered investment adviser. Registration does not imply a certain level of skill or training. Investing involves risk including possible loss of principal.