4 Ways to Maximize Your 401(k) in 2026 -- Even if You Can't Max Out

If you were to max out your 401(k) plan year after year, there's a good chance you'd end up with a huge amount of savings in time for retirement. But maxing out a 401(k) in 2026 is no easy feat.

This year, 401(k) plan contributions max out at $24,500 for savers under age 50 and $32,500 for savers ages 50 and over. And for savers between the ages of 60 and 63, the maximum 401(k) contribution this year is $35,750 thanks to a super catch-up people in that age group are entitled to.

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If maxing out your 401(k) contributions is out of the question this year, don't sweat it. You can still make the most of your 401(k) by doing these things.

1. Claim your employer match in full

It's fairly common for employers that offer a 401(k) plan to also provide some sort of matching incentive. If you can't max out your 401(k) this year, at least aim to contribute enough money to your retirement savings to claim your workplace match in full.

Not only does your employer match represent free money for your retirement account, but it's also money you can invest, thereby allowing your 401(k) to grow even more. Find out what your workplace match entails early on in the year, as it may have changed from 2025.

2. Bank your raise to boost your savings rate

If you're getting a raise this year, you have a prime opportunity to boost your 401(k) savings rate. But your best bet is to send that raise into your 401(k) in January.

Once that raise actually starts hitting your paycheck, you may get used to having extra money to spend. You're better off parting ways with that paycheck boost before you get into the habit of factoring it into your monthly budget.

3. Minimize investment fees

Maximizing your 401(k) isn't just about how money you contribute to that account. It's also a matter of how you manage your 401(k)'s investments.

One disadvantage of 401(k) plans is that they generally do not let you hold stocks individually the way IRAs do. Instead, you're typically limited to different fund choices. But the funds you choose could spell the difference between paying costly investment fees or not.

In general, passively managed index funds allow you to keep your fees to a minimum. Actively managed mutual funds and target date funds, by contrast, are notorious for charging higher fees that could eat into your returns significantly over time.

Now's a good time to take a close look at how your 401(k) is invested. You may want to make some changes to reduce fees.

4. Choose the right 401(k) type for your situation

A lot of people opt to save for retirement in a traditional 401(k) since these accounts let your money go in on a pre-tax basis. But if your company offers a Roth 401(k), you may want to consider choosing that option instead.

With a Roth 401(k), you give up a tax break on your contributions. What you get in return, though, are tax-free investment gains, tax-free withdrawals, and more flexibility with your money during retirement. That's because Roth 401(k)s do not force savers to take required minimum distributions.

If you're in a relatively low tax bracket this year, you may want to consider using a Roth 401(k) instead of a traditional 401(k). And if you earned more than $150,000 last year and are making a 401(k) catch-up, your only option for doing so is to use a Roth.

Maxing out a 401(k) plan is a great thing to be able to do. It's also something that's extremely difficult to do unless you earn a very large paycheck. But even if you can't max out your 401(k) contributions this year, there are steps you can take to set your retirement savings up for success.

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