Start the Year Strong: Tips to Optimize your Retirement Plan
By Heather Gardner, CFP®, Wealth Advisor
Start the year strong by optimizing your 401(k) or 403(b). New IRS limits are here for 2026, and updating your contribution before your first paycheck is one of the easiest ways to make a long-term impact.
2026 Employee Contribution Limits at a Glance
| Your Age | Base Limit | Catch-Up | 2026 Total Max |
| Under 50 | $24,500 | $0 | $24,500 |
| 50 – 59 | $24,500 | +$8,000 | $32,500 |
| 60 – 63 (Super Catch-Up) | $24,500 | +$11,250 | $35,750 |
| 64 and Over | $24,500 | +$8,000 | $32,500 |
The “super catch-up” feature is newer and allows for extra savings as one gets closer to retirement age.
3-step plan for saving for your FUTURE SELF:
- Get your full employer match.
Find out what this is and make that your minimum level of 401k participation. Otherwise, you are leaving money on the table. If possible, go for the maximum, or increase your percentage by 1% more than last year.
- Update your per-paycheck savings.
Calculate how much to save per pay period and update your payroll system before your first paycheck in 2026. If you get paid biweekly vs. semimonthly, use the right pay-period number.
- Choose Roth vs. Traditional (or a split)
Traditional 401(k) vs. Roth 401(k): What’s the difference?
Traditional 401(k)
- Contributions are pre-tax
- May lower your taxable income today
- Withdrawals are taxed as ordinary income in retirement *Often preferred if you are in a higher tax bracket now and expect a lower tax bracket later.
Roth 401(k)
- Contributions are after-tax
- No upfront tax break
- Qualified withdrawals can be tax-free later *Often preferred if you are in a lower tax bracket now and expect a higher tax bracket later.
- Important note: If your prior-year earnings exceed the IRS threshold (indexed for inflation), catch-up contributions generally must be made as Roth under current rules (plan rules may vary).
Start the year strong: get the match, review your contribution strategy, and confirm your tax approach. Small steps now can help position you for retirement.
This material is for informational purposes only and not individualized advice. Consult your advisor for guidance specific to your situation. Contact us at info@beamwealth.com or 404.602.0034 to schedule a retirement check-in.
