A 401(k) is an employer plan that lets workers save part of pay for retirement. This checklist tracks key dates, core documents, and tax choices that control contributions and withdrawals.
Use it to set contributions, read fee notices, and pick pre-tax or Roth treatment. It also flags payout ages and rollover steps for job changers. Keep it with your plan papers and review it each year.
Table of Contents
- How much can you add in 2026?
- What documents should you expect?
- Should you choose pre-tax or Roth?
- When must money stay in and when must it come out?
- What should job changers do with a payout?
How much can you add in 2026?
The Internal Revenue Service sets the 2026 employee elective-deferral limit at $24,500, as shown in the IRS cost-of-living limits table. Elective deferral means pay you choose to place in the plan. Total annual additions, which include employer money, cannot exceed $72,000.
The Internal Revenue Service allows an $8,000 catch-up for workers age 50 and older. Workers ages 60 through 63 may use a higher $11,250 catch-up. Check your birth year and payroll settings before year-end.
- Confirm your plan year and pay dates
- Divide your target amount by remaining paychecks
- Add catch-up funds if you qualify
What documents should you expect?
The Internal Revenue Service says employers must give new participants a plain-language Summary Plan Description within 90 days. That booklet explains eligibility, contributions, vesting, and how the plan runs. Store it where you can find it at tax time and job change.
The U.S. Department of Labor requires fee and investment details at eligibility and each year after, per the Department's fee disclosure guide. Quarterly statements must show dollar fees charged to your account. Save each statement with your tax file.
- Summary Plan Description
- Annual fee and investment notice
- Quarterly account statements
Should you choose pre-tax or Roth?
The Internal Revenue Service compares pre-tax and Roth rules in the IRS Roth comparison chart. Pre-tax deferrals lower taxable pay now and face tax later. Roth contributions face tax now.
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Qualified Roth payouts are generally free of federal income tax. The Internal Revenue Service says a plan that offers Roth must also offer pre-tax. Ask your plan how to elect the option you want.
When must money stay in and when must it come out?
The Internal Revenue Service says withdrawals before age 59½ generally owe income tax plus 10% extra tax unless an exception fits. One exception covers separation from service in or after the year you turn 55. Check the exception list before you request cash.
In a March 13, 2025 reminder, the Internal Revenue Service says workers born in 1951 through 1959 must start payouts at age 73. The first payout is due April 1 after you reach 73 or retire, if the plan allows delay. Later payouts are due each December 31.
What should job changers do with a payout?
The Internal Revenue Service gives recipients of an eligible payout 60 days to roll it to another qualified plan or IRA. A direct trustee-to-trustee transfer skips the 60-day clock and avoids a withholding gap. Ask both plans what forms they require.
Not every payout can roll over, and plan rules control what you may move. Confirm eligibility before you take cash. Request a direct transfer when you can.
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