“I contribute to my 401(k)” is a start. It’s rarely the whole strategy.
Hello, my dear reader,
If you contribute to a 401(k), there are a few numbers worth knowing before the year ends…
Not because more is always better — but because so many people contribute faithfully for years without ever checking whether they’re using what their plan actually offers.
Let’s start with the limits. For 2026, the employee contribution limit for most 401(k) plans is $24,500. If you’re 50 or older, you can generally add a catch-up contribution of $8,000 on top. And here’s one many people miss: if you turn 60, 61, 62, or 63 during 2026, you may be able to make a higher catch-up of $11,250 instead — if your plan permits it.
Then there’s the employer match — often the most valuable feature in the whole plan, and the one most worth understanding precisely. Match formulas vary from plan to plan, and contributing below the level your employer matches can mean leaving money on the table that you’ll never get back.
This is why “I contribute to my 401(k)” doesn’t actually tell you very much. It doesn’t tell you whether you’re capturing the full match, whether you’re eligible for a catch-up you’re not using, or whether your plan offers Roth contributions alongside Traditional.
So before the year closes, it’s worth a short, honest check. Pull up your plan and look at your current contribution percentage, your employer match, how much you’ve contributed so far this year, whether you’re eligible for catch-up contributions, and whether your plan offers Traditional and/or Roth. None of it takes long. All of it can matter.
“Don’t let ‘I have a 401(k)’ be the end of the conversation. Know how your plan is actually working for you.”
A plan you never examine is a plan that runs on autopilot.
And autopilot rarely takes you exactly where you meant to go.
With clarity, Pri ✨
Educational content only. This information is not tax, financial, investment, or retirement advice. Tax rules and individual circumstances vary. Consult a qualified professional before making financial or tax decisions.
