Retirement Contributions: What You Can Still Do Before December 31
Retirement contributions are one of the few tax moves most people can make on their own. They are also easy to get wrong on timing, because some deadlines fall on December 31 and some don't.
Workplace plans: the calendar year is the deadline
For a 401(k), 403(b), or similar plan, your contributions come out of your paycheck. That means what you put in for 2026 depends on the paychecks you have left this year. The 2026 limits are:
- $24,500 for employee contributions
- An extra $8,000 if you're 50 or older
- A higher catch-up of $11,250 if you're 60 to 63 and your plan allows it, which replaces the regular catch-up
If you want to raise your contribution, tell payroll or HR soon. A change can take a pay cycle or two to show up. Count your remaining paychecks, take the amount you want to add, and divide.
If your employer matches contributions, make sure you're on track to collect the full match. A missed match is pay you earned and didn't take.
IRAs: more time
Contributions to a traditional or Roth IRA for 2026 can be made until the filing deadline in April 2027. The 2026 limit is $7,500, plus an extra $1,100 if you're 50 or older. Waiting until April is allowed, though money that goes in earlier has more time to grow.
Whether a traditional IRA contribution is deductible, and whether you can contribute to a Roth at all, depends on your income and whether you have a workplace plan. That is a good question for a review.
Self-employed?
If you work for yourself, you may have options such as a SEP IRA or a solo 401(k). Some of these have setup or election deadlines worth confirming before the year ends. If this is you, ask now rather than in March.
One thing to do today
Log into your plan and find your year-to-date contributions. Compare that number to the limit and to the paychecks you have left. That tells you whether a change is worth making.
Want someone to look at your actual numbers?
How much to set aside depends on your cash flow, your age, and your tax situation. If you want a second set of eyes on yours, that is what the review is for.
Book Your Year-End Personal Tax Review →Ralph Estep Jr., LPA
This article is general information and not personal tax advice. Your situation may differ, so talk with a licensed professional before making decisions.