Could You Comfortably Max Your 401(k) Someday?

Maxing out your 401(k) isn’t something you have to achieve overnight. Think of it as a long-term goal you can work toward gradually, starting from wherever you are today. The ideas below are meant to help you get started and aren’t personalized investment, tax, or legal advice.

Start by defining “maxing out.”

For most people, “maxing out” a 401(k) means putting in as much as the IRS allows you to contribute each year (not counting what your employer adds). For 2025 and 2026, that limit is in the mid‑$20,000s if you’re under 50. If you’re 50 or older, or in the special 60–63 catch‑up window, you might be able to contribute even more, depending on your plan’s rules.

Because the dollar limit is the same whether you earn $60,000 or $260,000, reaching the max can mean saving a higher percentage of your income—especially if you’re on the lower end of that range. That’s why maxing your 401(k) is often presented as an aspirational goal you can work toward over time, rather than something you have to do all at once.

Map a path from today’s rate

A good place to start is by checking what percentage of your salary you’re saving now and how that stacks up against what you’d need to hit the annual limit. For instance, if you make $100,000 and the limit is $24,500, you’d need to save 24.5% of your pay to max out the plan. If you’re currently saving 8%, you’ve got lots of room to grow—and that’s perfectly okay.

From there, try mapping out a gradual path forward. Many providers suggest bumping up your contribution by 1% each year, or by part of each raise, until you reach your goal or the IRS limit. Some plans even offer auto-increase features that make these changes for you, so you don’t have to remember to do it yourself.

Use milestones, not perfection

Instead of aiming for perfection right away, set small, achievable milestones along the way. For example, you might start by contributing enough to get your full employer match, then aim for a total savings rate (including employer contributions) in the mid-teens, and only push toward the annual max if and when your budget allows.

Every time you reach a new milestone—like moving from 6% to 10%, then up to 15%—you’re giving yourself more money that can grow over time, even if you haven’t hit the formal 401(k) max. Milestones can also make it easier to juggle other priorities, like building your emergency fund or paying down high-interest debt.

Plan around cash flow and life changes

Maxing out your 401(k) can make a noticeable dent in your take-home pay, so it’s smart to see how a higher contribution will affect your monthly budget before you commit. Experts often suggest timing increases with raises or windfalls, so your lifestyle can adjust more gradually—like putting part of each raise, bonus, or debt payoff into your 401(k) instead.

As your career moves forward, your income and expenses will probably change—and that can create new chances to boost your savings. For example, if you finish paying off a student loan, you could put that money straight into your 401(k). If you’re 50 or older, the IRS catch-up rules may let you save even more, which can be especially helpful if you’re trying to close a retirement savings gap.

Revisit your plan regularly

Since contribution limits, tax laws, plan features, and your own situation can all change over time, it’s a good idea to review your 401(k) choices at least once a year. Use that check-in to make sure you’re still on track for your long-term goals, adjust your contribution rate if needed, and check that your investments still match your time frame and comfort with risk.

Maxing out your 401(k) isn’t required, and plenty of people hit their retirement goals without ever reaching the max—especially if they have other savings or sources of income. The most important thing is to have a clear, realistic plan to get from where you are now to a savings level that works for your long-term goals, and to keep making progress over time.

Disclosure

This article is provided for general educational and informational purposes only and does not constitute investment, legal, tax, or accounting advice. It is not an offer, solicitation, recommendation, or endorsement of any security, investment strategy, employer plan, or service, and should not be relied upon as a primary basis for any investment or retirement decision.

Investing through a 401(k) or other retirement plan involves risk, including possible loss of principal, and there is no guarantee that any strategy for increasing contributions or attempting to “max out” a plan will achieve any particular outcome. Contribution limits, catch‑up rules, and plan features are set by the IRS, plan sponsors, and applicable law and may change over time; you should review current IRS and plan documents and consult a qualified investment, tax, or legal professional about your specific situation.

Any numerical examples, contribution rates, or milestones discussed here are hypothetical and for illustration only; they do not reflect the results of any actual account or guarantee future performance.

Sources

• SoFi – How to max out your 401(k): https://www.sofi.com/learn/content/strategies-to-max-out-401k/​
• Fidelity – 401(k) contribution limits 2025 and 2026: https://www.fidelity.com/learning-center/smart-money/401k-contribution-limits​
• IRS – 401(k) limit increases to 24,500 for 2026: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500​
• Charles Schwab – 401(k) contribution limits 2024, 2025, and 2026: https://www.schwab.com/learn/story/401k-contribution-limits​
• Fidelity – How to max out your 401(k) and retirement savings: https://www.fidelity.com/learning-center/personal-finance/retirement/how-to-max-out-your-retirement-vp​
• Fidelity – What to consider after you max out your 401(k): https://www.fidelity.com/learning-center/personal-finance/what-to-consider-after-maxing-out-401k​
• San Francisco Chronicle – Retirement savings milestones and 401(k) limits: https://www.sfchronicle.com/personal-finance/article/401k-roth-ira-retirement-21226296.php​
• Investopedia – Strategies to max out your 401(k): https://www.investopedia.com/from-0-to-23500-strategies-to-max-out-your-401k-contributions-11781321​
• Olde Raleigh Financial – Understanding 401(k) contribution limits for 2026: https://www.olderaleighfinancial.com/orfg-resources/understanding-401k-contribution-limits-for-2026​
• ShareBuilder 401k – How to increase your retirement savings: https://www.sharebuilder401k.com/blog/how-to-increase-your-retirement-savings/​
• FINRA – 5 things to do to boost retirement savings: https://www.finra.org/investors/insights/things-to-do-boost-retirement-savings​
• IRS – Retirement topics: catch‑up contributions: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions​

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