Want to Max Out Your 401(k) in 2026? Here's What You'll Need to Do.
Summarize this article with:
It's a lofty goal, but it might be achievable with the right plan.Maxing out your 401(k) has never been an easy feat, but it's about to get more challenging in 2026 with contribution limits set to take a sizable leap on Jan. 1. Still, if you want to retire early or make up for past years when you weren't able to save as much as you wanted to, maxing out your 401(k) could be a worthy goal. You'll need more than money to pull it off, though. You also need a plan that considers your annual income and payment schedule. Here's how to make one. Image source: Getty Images. Know your contribution limit The IRS imposes limits on how much you can contribute to a 401(k) each year, and this varies based on your age. In 2026, adults under 50 can save up to $24,500. Those aged 50 to 59 and 64 or older can save up to $32,500, and those who will be aged 60 to 63 by the end of 2026 can save up to $35,750. These are the limits that apply to most people. However, some highly compensated employees (HCEs) may have lower contribution limits. Check with your HR department if you're unsure about the contribution limit for your 401(k) in 2026. Figure out how much you must defer per pay period Unlike IRAs, 401(k)s don't allow one-time contributions. You can only make paycheck deferrals. The amount you must save to max out your 401(k) depends not only on your contribution limit but also on how frequently you receive paychecks. The following table breaks down the most common types of payment schedules and the amount you'd need to defer to reach each of the three limits listed above.Advertisement Payment Schedule Required Paycheck Deferral to Save $24,500 in 2026 Required Paycheck Deferral to Save $32,500 in 2026 Required Paycheck Deferral to Save $35,750 in 2026 Weekly $471 $625 $688 Bi-weekly $942 $1,250 $1,375 Semi-monthly $1,021 $1,354 $1,490 Monthly $2,042 $2,708 $2,979 Calculations by author. All values rounded to the nearest dollar. It's important not to get bi-weekly and semi-monthly payments confused as this could throw off your plans. Bi-weekly payments go out every other week. That can sometimes result in three payments in a given month. Semi-monthly payments always go out twice per month. Check with your employer if you're unsure which payment schedule it uses. Come up with a plan Now that you know how much you need to save, the next step is to create a plan that will enable you to save that amount. That's the big challenge for most people. You may need to revise your budget to free up some extra cash or consider working overtime to bring in more money. Even then, it might not be feasible for you to max out your 401(k) in 2026. That's OK. You can still retire comfortably even if you never max out your 401(k). Focus on saving as much as you're able to, and claim your 401(k) match whenever possible if your employer offers one. If you get a raise, you can increase your 401(k) contributions then. Be careful not to put funds you might need in the near future into retirement savings if you're under 59 1/2. Once the money is in your 401(k), you typically face a 10% early withdrawal penalty for taking money out under this age without a qualifying reason. Focus instead on an amount that's sustainable for you and do your best to make some sort of contribution every pay period if you can. You can reevaluate your savings plan after a month or two to see if it's working for you. Then, decide if you want to adjust your deferral rate up or down.About the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.
Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKaileyRead NextDec 18, 2025 •By Katie Brockman2 Reasons I'll Be Taking Social Security Long Before Age 70Dec 18, 2025 •By Stefon WaltersMore 401(k) Savers Are Making This Incredibly Smart Move -- Should You Follow?Dec 18, 2025 •By Kailey Hagen, CFPWhere Should You Stash Your Retirement Savings First in 2026?Dec 18, 2025 •By Dana GeorgeCan You Retire a Millionaire by Investing Just $10 a Day?
The Answer Is Yes -- Here's the Math.Dec 18, 2025 •By Maurie BackmanUsing Medicare Advantage for the First Time in 2026? 3 Things You Need to Know.Dec 18, 2025 •By Maurie Backman3 Great Reasons to Save in a Roth IRA in 2026