Throughout the year, when we meet with clients, we’ll ask a simple question:

“Should I take a smaller check sooner or a bigger check later?”

Almost everyone says yes. Then we check their payroll election or 401(k) statement… and often, they’re not. Not because they’re careless. Because limits change. Pay changes. But the withholding often stays the same.

The beginning of the year is a great time to confirm you’re actually on track to max out your 401(k) for 2026 — not just assuming you are. As with many things in life and money, small adjustments now can make a meaningful difference later.

1. Did You Update Your Contribution for the New Limit?

Each year, the IRS adjusts contribution limits.

For 2026:

• Employee deferral limit: $23,500
• Catch-up (age 50+): $7,500
• Enhanced catch-up (ages 60–63): $11,250

We also see many 60–63 year-olds missing out on the extra $3,750 simply because this enhanced catch-up is still relatively new. If you maxed out last year and didn’t increase your payroll percentage to match the new limit, you’re automatically underfunding. We see this constantly. A small tweak in January is far easier than scrambling in November.

2. If You’re 50+, Did You Elect the Catch-Up?

This is the most common miss.

Many plans do not automatically apply the catch-up unless:

• You explicitly elect it, or
• You contribute enough late in the year to trigger it.

We regularly see people in their 50s and early 60s leaving $7,500 or more on the table simply because they assumed it was happening. It’s not dramatic. It’s just a small miss.

Over 10–15 years, that small miss adds up to a very big miss.

3. Higher Earners: There’s a New Roth Catch-Up Rule

Starting in 2026, if your prior-year W-2 wages from your employer exceeded $145,000, your catch-up contributions must be made to a Roth 401(k).

No more pre-tax option, this means:

• Slightly more tax today
• More tax-free income later

This applies to 401(k), 403(b), and similar employer plans. It does not apply to:

• IRAs
• SEP IRAs
• Most sole proprietor setups without W-2 wages

If you’re an S-Corp owner paying yourself W-2 wages, this may apply. It’s worth confirming how this fits into your overall plan. For disciplined savers, this isn’t necessarily bad. It’s simply a shift toward building more tax-free income.

4. Are You Accidentally Hurting Your Employer Match?

Another issue we see is when someone maxes out their 401(k) too quickly. If your employer match is calculated per paycheck rather than with an annual true-up, maxing out early could mean missing match dollars in the remaining pay periods. Saving aggressively is good. Saving strategically is better.

5. Does Your 401(k) Fit the Rest of Your Plan?

Your 401(k) election isn’t just a payroll decision, ask yourself:

1. Should contributions be pre-tax or Roth?
2. Are we intentionally filling a tax bracket?
3. Does this align with future Roth conversion plans?

When we say Small Improvements. Big Results. this is exactly what we mean. Adjusting a payroll percentage might feel minor. Over decades, it isn’t.

Bottom Line

If you’re contributing to your 401(k), that’s great.

But “set it and forget it” doesn’t work when:

• Contribution limits change
• Your income changes
• Tax rules change

Now is a good time to confirm:

•  Contribution limit updated
• Catch-up elected (if 50+)
• Roth rule understood for higher earners
• Employer match optimized

It usually takes 10–15 minutes to review and can prevent years of small misses. If you’d like us to take a quick look at your 2026 setup, we’re happy to help.

Small adjustments now. Much bigger impact later.