Year-End 401(k) Checklist: Contributions, Match, and Beneficiaries

Before year-end, reconcile your retirement contributions, check how the employer match works, and submit any payroll changes while they can still take effect. For 2026, the employee deferral limit is $24,500 for 401(k), 403(b), and most governmental 457 plans. Catch-up eligibility and plan-specific rules can change what you may contribute.

Do not start with the maximum and assume you need to reach it. Start with your household cash flow and the plan's terms. The goal is to make a deliberate contribution decision, collect the match available under your plan, and avoid discovering a payroll or beneficiary problem after the year closes.

Reconcile paychecks with the account statement#

Pull the latest pay statement and retirement account activity. Compare the year-to-date employee deferrals with the deposits reaching the plan. Timing differences may explain a recent missing deposit, but an unexplained mismatch deserves a question to payroll or the administrator.

Separate employee deferrals from employer contributions, investment earnings, and rollovers. The account balance is not a measure of how much you contributed this year. A market decline can reduce the balance while your deferrals continue as planned.

If you changed jobs, gather the former employer's records too. Certain employee deferral limits apply across plans, while governmental 457 plans have different coordination rules. Do not assume a new employer's payroll system can see what you contributed elsewhere. Ask the administrators or a tax professional to reconcile the applicable limits.

Use the confirmed 2026 limits for this year's election#

The figures below concern employee deferrals and catch-up amounts. They do not describe every limit that can apply to a retirement plan. Your employer's plan must permit the relevant contribution, and eligibility rules still matter.

The higher catch-up replaces the regular catch-up for eligible participants; it is not an additional amount stacked on top of both other rows. Ask how your plan applies age eligibility for the contribution year and how catch-up contributions must be designated.

The IRS usually announces the next year's limits in late October or November. A projection in a planning article is not an announced limit. Leave next year's budget adjustable until the official information is available.

Ask payroll which election can still be processed#

Employee deferrals generally flow through payroll. You cannot assume that a personal bank transfer after year-end will fix a missed workplace deferral. Ask for the last election date that can affect the remaining paychecks, including any bonus payroll you expect.

Estimate the remaining room under the applicable limit, then compare it with pay still available for deductions. Payroll may have limits on the share of wages you can defer or on how quickly an election takes effect. Taxes and other deductions also affect take-home pay.

After changing an election, check the next affected paycheck and the plan deposit. Retain the confirmation. Set a reminder to review the election for the new year so an unusually large year-end percentage does not continue unintentionally.

Read the match formula before accelerating contributions#

Ask whether the employer calculates its match each paycheck or over a longer period. Find out whether the plan has a true-up, which may reconcile matching contributions later. Do not assume a true-up exists simply because another employer offered one.

Front-loading your employee contribution can affect matching if the plan calculates it by paycheck and does not reconcile later. The practical question is whether stopping contributions before the final paychecks would leave any available match unearned under this plan's formula.

Review eligibility, the match deposit schedule, and vesting. An employer contribution appearing in the account does not necessarily mean you can keep all of it if you leave. What happens to a 401(k) after leaving a job explains why those records matter during a transition.

Separate the contribution amount from the tax treatment#

Traditional and Roth contributions involve different tax treatment. Increasing the amount and changing the contribution type are separate decisions. Consider current cash flow, expected future circumstances, and the account options your employer provides.

For the basic distinction, read traditional versus Roth 401(k) contributions. Do not choose solely because a coworker expects a particular future tax rate. A qualified tax professional can assess your income, deductions, and other accounts together.

Catch-up contributions can have additional treatment requirements depending on your circumstances and plan. Ask specifically how the current rules apply rather than assuming every dollar can go to the same contribution source as before.

Check the people and investments attached to the account#

Open the beneficiary section rather than relying on memory. Confirm names, contact information, shares, and contingent beneficiaries. A will does not necessarily replace the plan's beneficiary designation. Marriage, divorce, a death, or a new child may justify legal and administrative review.

Review your investment allocation and fees separately from the contribution election. A contribution may go into an investment you no longer intend to use. Check both the current balance allocation and the instructions for future deposits.

Avoid trading simply because it is year-end. Compare the allocation with your time horizon, ability to absorb losses, and broader holdings. Retirement account funding priorities can help place this workplace account alongside other goals without making the contribution maximum the sole target.

Close the review with a short written record#

Save the contribution reconciliation, match explanation, election confirmation, and beneficiary review date. Write down any question still awaiting payroll or administrator action. Follow up before the processing cutoff rather than waiting for the next annual statement.

This article offers general information, not tax or legal advice. Use IRS guidance for official limits, the administrator for plan rules, and a qualified professional for corrections, complex account combinations, or beneficiary questions involving legal rights.