Key Takeaways
- Check whether SECURE 2.0 auto-enrolled you in a 401(k) at a default rate that may be lower than what you actually want to save.
- Make sure your contribution rate is high enough to capture your full employer match, and check your vesting schedule if you're considering a job change.
- 2026 contribution limits increased across the board, including a $24,500 401(k) limit and a $7,500 IRA limit, so it may be worth considering raising your contribution rate if your budget allows.
- Decide whether traditional (pre-tax) or Roth (after-tax) contributions make more sense for your current and expected future tax bracket.
- Track down and consider rolling over old 401(k)s from previous jobs, since it's easy to leave retirement accounts behind after every job change.
Open enrollment season means health plans, dental coverage, and flexible spending accounts, but it's also a good time to take a second look at your retirement savings. Employer benefits enrollment occurs annually, usually near the end of the calendar year, and for most people it's one of the few chances all year to change how much they save and where that money goes. Before you click through your benefits portal, here are five 401(k) basics worth double-checking.
1. Are You Already Auto-Enrolled in Your 401(k)?
If your employer started a new 401(k) or 403(b) plan recently, you might already be saving for retirement without realizing it.
A law called SECURE 2.0 requires most new retirement plans to automatically enroll eligible employees. Here's how it could work in your plan:
- You're signed up to contribute at least 3% of your paycheck by default.
- That rate usually increases by 1% each year. It keeps rising until it hits at least 10%.
To know for sure, check your plan documents to see the auto-enrollment rules that may apply to you. You can opt out or change your contribution rate at any time. It's worth asking yourself whether you actually know what percentage you were defaulted into.
2. Are You Getting Your Full 401(k) Employer Match?
Employer contributions are one of the simplest ways to boost your retirement savings, but only if you contribute enough to actually get them. It's worth revisiting your contribution rate periodically, since even a small increase can mean the difference between capturing the full match and leaving part of it unclaimed.
Match formulas vary by employer, so it's worth checking your plan's exact terms during open enrollment rather than assuming last year's contribution rate still gets you the full match. It's also worth checking your vesting schedule. Some employers phase in your ownership of matching funds over time through a graded vesting schedule, while others vest matching funds immediately. This distinction matters if you're weighing a job change.
3. What Are the 2026 401(k) and IRA Contribution Limits?
Contribution limits change every year, and open enrollment is a good time to make sure your contributions still make sense against the annual limits. For 2026, the 401(k) employee contribution limit increased to $24,500, up from $23,500 for 2025, and the limit on annual contributions to an IRA is increased to $7,500 from $7,000.
If you're 50 or older, the standard 401(k) catch-up contribution is increased to $8,000, up from $7,500 for 2025, and workers ages 60 to 63 can contribute even more with super catch-up contributions.
If your budget allows, this is a good time to increase your contribution rate to take fuller advantage of these higher limits, even if it's just by a percentage point or two. Small increases now can potentially compound significantly by the time you retire.
