How to max out your 401(k) in 2026, including the new Roth catch-up rule

For most employees the 401(k) is the largest tax deduction available, and it comes straight off the paycheck. This guide explains how to use the full amount.

2026 and 2027 limits

The ages 60–63 catch-up replaces the regular catch-up instead of adding to it, so a 61-year-old can defer $24,500 + $11,250 = $35,750 in 2026.

The Roth catch-up rule

Starting in 2026, if your FICA wages from the employer in the prior year exceeded $150,000, any catch-up contributions must go in as Roth. For 2027 catch-ups, the threshold is $155,000 of 2026 FICA wages. Your regular $24,500 can still be pre-tax. A plan that doesn't offer Roth can't let affected employees make catch-ups at all, so check with HR.

Key numbers: $24,500 deferral · $8,000 catch-up · $11,250 at ages 60–63 · Roth catch-up required above $150,000 prior-year FICA wages ($155,000 for 2027) · 2027 deferral $25,500.

Choosing pre-tax or Roth

A pre-tax deferral saves tax at today's marginal rate, while a Roth deferral saves tax at your future rate. Several rules of thumb apply.

• Pre-tax deferrals tend to come out ahead in peak-earning years in the 32%+ brackets.
• Roth tends to be the better choice early in a career, in low-income years, or if you already have large pre-tax balances that will create big required distributions.
• Splitting contributions between the two hedges against future tax law changes.

In Connecticut

Because Connecticut starts from federal AGI, pre-tax deferrals lower Connecticut tax as well. Roth deferrals don't. In retirement, current Connecticut law subtracts 401(k), 403(b), and traditional IRA withdrawals in full if federal AGI is under $75,000, or $100,000 for joint filers, and the break phases out completely at $100,000 ($150,000 joint). If you expect to retire in Connecticut on a moderate income, pre-tax savings may never be taxed by the state, which tilts the choice toward pre-tax.

Pace deferrals so you don't lose the match

Some employers match per paycheck with no "true-up." If you front-load and reach $24,500 by September, you could miss match dollars for the rest of the year. To avoid that, divide the limit by your remaining pay periods.

A worked example

A 52-year-old single filer earning $190,000 in 2025 and 2026 defers $24,500 pre-tax and $8,000 as a Roth catch-up. Roth treatment is required because 2025 FICA wages exceeded $150,000. At a 24% marginal rate, the pre-tax portion saves $5,880 in federal tax for 2026, and the Roth catch-up grows tax-free.

Common mistakes

1. Changing jobs mid-year and exceeding the limit across two plans. The limit is per person, not per plan, although a governmental 457(b) has its own separate limit.
2. Not updating deferral percentages after a raise or bonus.
3. Ignoring after-tax contribution options that allow a mega-backdoor Roth.
4. Assuming employer contributions count toward your $24,500. They don't. Employer money counts toward the $72,000 total.

How Summer Associates helps

Summer Associates' individual planning team models pre-tax versus Roth across your career, sets deferral pacing with your employer match in mind, and coordinates limits across job changes.

This guide is general education based on federal and Connecticut law as of 2026-11-15. State rules differ and facts matter. Before acting, get advice for your situation from Summer Associates or another qualified advisor.