It’s the start of a new year—are you confident your 401(k) is set up for success in 2026? A quick checkup now can help you make sure your savings rate, investment mix, and any old account balances are all still working toward the retirement you want. Use these five simple questions as a high-level review to help you spot opportunities to fine-tune your plan. (This isn’t investment advice—just a friendly guide to get you thinking!)
1. Are You Using 2026’s Contribution Room?
For 2026, the standard employee contribution limit for 401(k), Roth 401(k), 403(b), and most 457 plans is 24500 dollars. If you’re 50 or older, you can put in an extra * dollars as a catch-up, bringing your total to 32,500 dollars. If you’re between 60 and 63, you might even qualify for a higher catch-up contribution if your plan allows it.
Look at what you put away in 2025 and see how it lines up with this year’s limits and your expected income. Is your current savings rate still on track for your long-term goals? Even a small bump—just 1–2 percent more when you get a raise—can make a big difference over time without feeling like a big sacrifice.
2. Does Your Investment Mix Match Your Time Horizon and Risk Tolerance?
Retirement can last decades, so your 401(k) needs to balance growth potential with a level of risk you’re comfortable with. Many plans offer target-date or age-based portfolios that automatically shift from mostly stocks to more bonds and cash as you get closer to retirement.
Check if your current mix of stocks and bonds still matches your age, when you plan to retire, and how you feel about market ups and downs. Sometimes, your investments drift to a risk level you didn’t intend as the market changes. If you use a target-date fund, make sure the “year” in the fund’s name still matches when you expect to start withdrawals. And remember—not all target-date funds are the same, even if they have the same year.
3. Has Your Account Drifted Away From Its Target Allocation?
Markets go up and down, and that can push your investments away from your intended mix. Rebalancing—either on a set schedule (like once a year) or when your allocations get out of line—can help you stay closer to your target, especially in choppy markets.
Log in to your account and see if your current percentages in stocks, bonds, and cash still look like your original plan. If your provider offers automatic rebalancing, think about whether turning it on would make things easier—it can help keep your investments on track without you having to remember.
4. Are Old 401(k)s Still Aligned With Your Plan?
It’s easy to forget about 401(k) accounts from old jobs, but they can sometimes be stuck in outdated investments or come with higher fees. It’s smart to check in on these accounts occasionally—look at the fees, the investment options, and whether they still fit your overall plan.
As you review your finances for 2026, jot down where each old account lives, how it’s invested, and whether it’s being rebalanced or getting any new contributions. Then you can decide—on your own or with a pro—if you want to leave it there, roll it into your current 401(k), or move it to an IRA. Each choice has its own pros, cons, and features to consider.
5. Does Your 401(k) Still Support Your Retirement Goals?
Finally, take a step back and ask yourself: Does your current savings rate, 401(k), and other accounts put you on track for the retirement lifestyle you want? Review your expected income sources—like Social Security, pensions, or withdrawals—and compare them to what you think you’ll spend. You might find you want to tweak your savings or your timeline.
If life changed for you in 2025—maybe a new job, a raise, fewer hours, or a shift in family priorities—now’s a good time to revisit your plans for retirement and your savings goals for 2026. A big-picture check-in like this can help you make more intentional choices, rather than just going with the flow or reacting to the latest headlines.
Disclosure
This article is for general informational and educational purposes only and does not constitute investment, legal, tax, or other professional advice. It is not an offer to buy or sell any security, to roll over or transfer any account, or to participate in any specific investment or retirement strategy, and it should not be relied upon as the sole basis for any financial decision. The discussion of 401(k) limits, plan features, and portfolio concepts is generic and may not reflect the rules or investment options of your employer plan, and tax and retirement laws may change. You should consult a qualified financial professional and, where appropriate, a tax professional who can consider your individual circumstances, objectives, risk tolerance, time horizon, and employer‑plan details before implementing or changing any contribution, rollover, or investment strategy. All investing involves risk, including the possible loss of principal, and no plan, asset allocation, or strategy can guarantee profits, prevent losses, or ensure any particular outcome. Past performance, including past market or account returns, is not indicative of, and does not guarantee, future results.
Sources
- 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
- Nationwide – IRS Contribution Limits: https://www.nrsforu.com/rsc-preauth/investing/irs-limits/
- Fidelity – Solo 401(k) contribution limits 2025 and 2026: https://www.fidelity.com/learning-center/smart-money/solo-401k-contribution-limits
- Vanguard – Target-date fund rebalancing approach: https://workplace.vanguard.com/insights-and-research/perspective/vanguards-approach-to-target-date-fund-rebalancing.html
- 401(k) Specialist – SEC Marketing Rule Compliance Risk Alert: https://401kspecialistmag.com/sec-cautions-advisors-over-marketing-rules-compliance/
- Empower – 401(k) contribution limits for 2025 and 2026: https://www.empower.com/the-currency/work/401k-contribution-limits
- IRS – 2026 Amounts Relating to Retirement Plans and IRAs: https://www.irs.gov/pub/irs-drop/n-25-67.pdf
- T. Rowe Price – Retirement savings by age: What to do with your portfolio in 2026: https://www.troweprice.com/personal-investing/resources/insights/retirement-savings-by-age-what-to-do-with-your-portfolio.html
- Wealth Enhancement – Catch-up Contributions: Why They Matter & 2026 Changes: https://www.wealthenhancement.com/blog/your-guide-to-catch-up-contributions
- Brighton Jones – Target Date Funds Could Be Slowing Your Retirement Growth: https://www.brightonjones.com/blog/target-date-funds/
- SEC – Investment Adviser Marketing Final Rule (IA‑5653): https://www.sec.gov/files/rules/final/2020/ia-5653.pdf
- Dechert – SEC Adopts Modernized Investment Adviser Marketing Rule: https://www.dechert.com/knowledge/onpoint/2020/12/sec-adopts-modernized-investment-adviser-marketing-rule-governin.html
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