How to Hit the New $\text{\$24,500 401(k)}$ Limit in $\text{2026}$
For investors under the age of $\text{50}$, the $\text{IRS}$ has increased the standard $\text{401(k)}$ contribution limit to an estimated **$\mathbf{\$24,500}$** for $\text{2026}$. This is a significant opportunity to boost your tax-advantaged retirement savings and accelerate your path to financial independence.
However, simply "setting it and forgetting it" can lead to missed opportunities, particularly if your employer offers a matching contribution. This guide will show you how to strategically hit the new $\text{\$24,500}$ limit without leaving any employer match on the table.
Understanding the New $\text{2026}$ Limit
The new limit of $\mathbf{\$24,500}$ (up from an estimated $\text{\$23,500}$ in $\text{2025}$) applies to your **elective deferrals**—the money you contribute from your paycheck. This does not include any employer contributions (match or profit-sharing).
New Standard $\text{401(k)}$ Contribution Limit ($\text{Under 50}$) for $\text{2026}$:
$\mathbf{\$24,500}$(This is your personal pre-tax or $\text{Roth}$ contribution limit)
Step 1: Calculate Your Per-Paycheck Contribution
The first step is to determine how much you need to contribute from each paycheck to hit $\mathbf{\$24,500}$ by year-end. This depends on your payroll frequency:
| Payroll Frequency | Number of Paychecks | Required Per-Paycheck Contribution |
|---|---|---|
| **Weekly** | $\text{52}$ | $\mathbf{\$471.15}$ |
| **Bi-Weekly** | $\text{26}$ | $\mathbf{\$942.31}$ |
| **Semi-Monthly** | $\text{24}$ | $\mathbf{\$1,020.83}$ |
| **Monthly** | $\text{12}$ | $\mathbf{\$2,041.67}$ |
You’ll need to adjust your $\text{401(k)}$ election with your Human Resources department or through your plan's online portal to meet these numbers, effective January $\text{1}, \text{2026}$.
Step 2: AVOID The "Missed Match" Trap
This is where many enthusiastic savers make a costly mistake. If you front-load your $\text{401(k)}$ contributions and hit the $\mathbf{\$24,500}$ limit too early in the year, you might stop receiving your employer's matching contributions for the rest of the year. This is known as a "missed match" or a "true-up" issue.
Warning: Some $\text{401(k)}$ plans only match contributions on a per-paycheck basis. If you max out early, you get no further match from your employer for that year.
To avoid this, ensure your contribution percentage is set so that you hit the $\mathbf{\$24,500}$ limit exactly, or as close as possible, with your **final paycheck of the year**.
Example: How to Avoid Missed Match
If you get paid bi-weekly and earn $\mathbf{\$3,000}$ per paycheck:
- **Limit:** $\mathbf{\$24,500}$
- **Paychecks:** $\text{26}$
- **Required per paycheck:** $\mathbf{\$942.31}$
- **Contribution Percentage:** $\mathbf{\$942.31} / \mathbf{\$3,000} = \mathbf{0.3141} \approx \mathbf{31.4\%}$
Set your contribution to $\mathbf{31.4\%}$ (or the closest whole number percentage your plan allows) to spread your contributions evenly throughout the year and capture the full match.
Step 3: Consider Other Retirement Accounts
Even if you hit the $\text{401(k)}$ limit, you might have more capacity to save in other tax-advantaged accounts:
- **Traditional/Roth $\text{IRA}$:** The $\text{2026}$ limit is expected to be around $\mathbf{\$7,500}$ for those under $\text{50}$. Maxing this out gives you another powerful tax shelter.
- **Health Savings Account ($\text{HSA}$):** If eligible, this is a triple-tax-advantaged account. The $\text{2026}$ limits are expected to be around $\mathbf{\$4,300}$ for individuals and $\mathbf{\$8,550}$ for families.
For a full picture, review our Guide to New $\text{2026}$ Retirement Limits, which includes catch-up contributions.
Don't leave free money on the table or miss out on tax-advantaged growth. Adjust your $\text{401(k)}$ contributions for $\text{2026}$ now and set yourself up for long-term financial success.
Download our free $\text{2026}$ Retirement Contribution Calculator to map out your strategy.
Start your side hustle today with FinRise Pro USA!
© 2025 FinRise Pro USA. Invest consistently.