A recession can be a challenging time for investors, especially those with retirement accounts like 401(k)s. However, there are strategies you can employ to protect your 401(k) during a recession and ensure your retirement savings remain on track. Here are some key steps to consider:

1. Continue contributing to your 401(k) plan
Despite market downturns, it's essential to keep contributing to your 401(k) plan. By doing so, you can take advantage of lower stock prices and buy more shares at a discount, also known as "buying the dip". Continuing to contribute also allows you to benefit from compound interest and employer-matching contributions.

2. Maintain a well-diversified portfolio
A diversified portfolio can help protect your investments during a recession. This means spreading your investments across various asset classes, such as stocks, bonds, and cash equivalents. A diversified portfolio can help reduce the impact of market fluctuations on your overall investment performance.

3. Review your asset allocation
Reassess your asset allocation to ensure it aligns with your risk tolerance and investment goals. If you're nearing retirement, you may want to shift towards a more conservative allocation, with a higher percentage of bonds and cash equivalents. On the other hand, if you have a longer investment horizon, you can afford to maintain a higher percentage of stocks in your portfolio.

4. Don't panic-sell your investments
Resist the urge to sell your investments during a market downturn. Panic-selling can lock in losses and hinder your ability to recover when the market rebounds. Instead, focus on maintaining a long-term investment strategy and avoid making impulsive decisions based on short-term market fluctuations.

5. Consider target-date funds
Target-date funds are designed to automatically adjust your asset allocation based on your anticipated retirement date. These funds can help ensure your portfolio remains balanced and diversified throughout your investment journey, making them a useful tool for managing your 401(k) during a recession.

6. Keep some cash on hand
Having cash reserves can help you cover unexpected expenses during a recession without having to tap into your 401(k) investments. Financial professionals recommend retirees have enough cash or cash equivalents to cover three to five years' worth of living expenses.

7. Stay the course
It's crucial to remain committed to your long-term investment strategy during a recession. Market downturns are a natural part of the economic cycle, and historically, stock prices have rebounded after each downturn. By staying the course and continuing to invest, you can optimize your 401(k) performance in the long run.

8. Seek professional advice
If you're unsure about how to manage your 401(k) during a recession, consider seeking the guidance of a financial advisor. They can help you review your investment strategy, assess your risk tolerance, and make any necessary adjustments to protect your retirement savings.

Let's wrap up by saying this, protecting your 401(k) during a recession involves maintaining a well-diversified portfolio, continuing to contribute, and staying committed to your long-term investment strategy. By following these steps, you can help ensure your retirement savings remain on track, even during challenging economic times.