Check every 401(k) claim against three official sources: IRS limits, your Social Security record, and your plan documents. A 401(k) is an employer-based retirement account with federal tax rules, and any promise that conflicts with those records is a red flag.
Use the numbers to screen pitches fast. Compare contribution, catch-up, and benefit-increase claims to the 2026 federal figures. Ask for the plan language in writing when a salesperson will not show it.
Official resources:
- Read the official notice from SEC — Use this primary source to verify the official announcement.
- Read the official notice from Irs — Use this primary source to verify the official announcement.
Table of Contents
- Check IRS contribution limits first
- Match Social Security claims to your official record
- Demand the plan documents you are owed
- Spot sales pressure aimed at older savers
- Run a 10-minute claim check before you act
Check IRS contribution limits first
The IRS reports the 2026 employee elective-deferral limit is $24,500, up from $23,500 in 2025. It covers 401(k), 403(b), governmental 457 and federal Thrift Savings plans under Notice 2025-67, described in the 2026 contribution limits announcement. Use that ceiling to test any tax-savings pitch.
Workers age 50 and older can add an $8,000 catch-up contribution in 2026, for a $32,500 total, according to IRS rules reported by Kiplinger. Any claim promising higher tax-advantaged employee deferrals exceeds the federal limit. Ask the adviser to rewrite the illustration at the legal maximum. Screen contribution claims in minutes:.
- Ask for the plan year and whether the figure is employee deferral or total contributions.
- Compare the employee-deferral figure to $24,500, or $32,500 if age 50 or older.
- Keep the written calculation and walk away if the seller changes the subject.
Match Social Security claims to your official record
The Social Security Administration explains in its advocate update on my Social Security accounts that anyone can create a free account to view their official Statement, earnings history, and benefit estimates. Use it to check for misreported wages that lower benefits. Bring the Statement to any meeting about claiming age or spousal coordination. The Administration set the 2026 cost-of-living adjustment at 2.8% for Social Security and SSI.
It lifts the estimated average retired-worker benefit from about $2,015 to $2,071 in January 2026. Treat a larger across-the-board increase promise as false. A personal estimate can still differ from the average because earnings and claiming age differ. Do not accept a seminar slide as your benefit amount. Use only the figure tied to your earnings record.
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Demand the plan documents you are owed
The Department of Labor states in its disclosure guidance that participants may examine plan-governing documents, insurance contracts, and the latest Form 5500 annual report free at the administrator's office. You can obtain copies on written request. Read fees, vesting, distributions, and employer-match rules in that language. The IRS lists out-of-date plan documents and late or missing amendments for recent law changes among top 401(k) failures.
Correction generally requires an amendment or its correction programs. Refusal to show a current restatement is a red flag. Send a short written request to the plan administrator for the summary plan description and latest annual report. Compare the adviser's claim about eligibility or withdrawals to those pages. Keep the reply with your enrollment records.
Spot sales pressure aimed at older savers
The Securities and Exchange Commission warns in its 2023 fraud warning that promises of high guaranteed returns with little or no risk signal investment fraud. Time-sensitive offers and high-pressure tactics are additional warnings. Older investors are frequent targets. A legitimate plan administrator answers document requests in writing.
A fraud promoter rushes you, limits questions, or guarantees market-like gains without loss. End contact when pressure replaces paperwork. Bring a family member or trusted contact to second meetings. Ask for risks, fees, surrender terms, and licensing in writing. Report threats or guaranteed-return promises to counsel or regulators before moving money.
Run a 10-minute claim check before you act
Match each number in the pitch to its source page. Confirm the deferral fits $24,500 or $32,500, the Social Security figure matches your Statement, and the plan rule matches the administrator's document. Reject any piece the seller cannot source.
Save screenshots, Statements, plan pages, and the adviser's written illustration together. Note dates, names, and what was promised. That file supports complaints, corrections, and tax filing.
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