Your 2026 year-end 401(k) checklist is to confirm your employee deferrals fit the IRS limit before your last paycheck and correct any excess promptly. A 401(k) elective deferral is the portion of your pay you choose to contribute as pre-tax or Roth.
The Internal Revenue Service raised the 2026 employee limit to $24,500, up from $23,500 in 2025, according to the IRS COLA table. That cap covers pre-tax plus Roth deferrals per worker. Check year-to-date deferrals now because only remaining 2026 payroll can close the gap.
Table of Contents
- How much can you still defer?
- Will total limits or pay caps affect you?
- Must your catch-up be Roth?
- What is the payroll deadline and excess fix?
How much can you still defer?
Workers age 50 or older in 2026 can add an $8,000 standard catch-up, for a personal deferral maximum of $32,500 if the plan allows it. Employees turning 60, 61, 62 or 63 in 2026 qualify for an $11,250 SECURE 2.0 super catch-up instead of $8,000. That group can contribute up to $35,750 in employee deferrals.
Compare your last pay stub to your target. Divide the remaining amount by remaining paychecks. Ask payroll whether a change will apply to the final 2026 pay date.
Will total limits or pay caps affect you?
Total 2026 annual additions per participant are capped at $72,000, plus catch-up. The practical ceiling is $80,000 normally or $83,250 for ages 60-63.
Only compensation up to $360,000 counts for 2026 allocations and tests, as summarized by Curcio Webb in its IRS limits summary. Payroll must stop matching and allocating deferrals beyond that pay level. High earners near the cap should confirm employer contributions stopped on schedule.
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Must your catch-up be Roth?
Starting with 2026 plan years, catch-ups by workers whose prior-year FICA wages exceeded $145,000 indexed must be designated Roth. Gallagher explains the requirement in its review of the IRS final regulations. That rule eliminates pre-tax catch-ups for those high earners.
Check last year's FICA wages if you plan a catch-up. Confirm your plan has a Roth option and that payroll coded the contribution correctly. A miscoded pre-tax catch-up can create a correction later.
What is the payroll deadline and excess fix?
Employee deferrals for 2026 must come from 2026 payroll and cannot be made retroactively. The effective deadline is the employer's final 2026 pay date, generally Dec.
31. Excess 2026 elective deferrals should be distributed with earnings by April 15, 2027, according to the IRS 401(k) Fix-It Guide. Timely excesses are taxable in 2026, earnings are taxable on distribution, and no early-withdrawal penalty applies.
- Confirm the date of the last 2026 paycheck subject to deferrals
- Confirm deferral percentage and Roth versus pre-tax coding
- Notify the plan promptly if deferrals will exceed your allowed amount
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