Most professionals believe they’re doing everything right with their 401(k).
They’re disciplined.
They contribute consistently.
They make sure they “max it out” every year.
But while that diligence matters, maxing out is not the same as optimizing.
At Tannery Company, we review 401(k) strategies for high-earning professionals at different stages of their careers. In more than 90% of those reviews, we uncover two or three overlooked details that could materially improve long-term retirement outcomes—without increasing risk or complexity.
While we often review these strategies with very high earners, the most potent time to plan is before complexity sets in. For professionals in their early 30s, getting these decisions right early can quietly compound into meaningful advantages over time—long before income peaks.
That’s the difference between reacting and planning.
Plan First. Live Calm.
Step 1: Update Your 2026 Contribution Limit
The employee 401(k) contribution limit for 2026 is $24,500. That’s $1,000 higher than last year.
Without updating your retirement contributions, you may be underfunding your retirement without realizing it.
Plan First:
Log in to your plan and adjust your deferral percentage to reflect the new limit.
Step 2: Confirm Your Employer Match Formula
Employer match isn’t a bonus—it’s a formula.
If you don’t know the formula, you can’t optimize it.
Plan First:
Review your benefits portal and ensure you’re capturing every employer dollar available.
Step 3: Check for a True-Up Provision
Many professionals front-load their 401(k) contributions early in the year.
If your plan does not include a true-up provision, employer contributions may stop once your contributions stop.
Plan First:
Confirm whether your plan includes a true-up and adjust contribution timing accordingly.
Step 4: Review Your Vesting Schedule
Employer contributions may not be entirely yours yet.
Plan First:
Factor in vesting when making career decisions and timing.
Step 5: Roth vs. Traditional—Make it a Strategy, Not a Habit
The right choice depends on today’s marginal tax rate versus your expected future rate.
Plan First:
Make Roth and Traditional decisions intentionally.
Step 6: Review Your Investment Lineup
Target-date funds are easy to use, but often expensive.
Plan First:
Reduce unnecessary fees and align investments with your risk tolerance.
Step 7: Explore After-Tax Contributions and the Mega Backdoor Roth
Advanced planning can have an outsized impact on your retirement.
Plan First:
Most firms require your advisor and CPA to coordinate. At Tannery Company, they’re the same team. Tax strategy, investment decisions, and implementation occur in a single conversation—reducing complexity and improving long-term outcomes.
The Bottom Line
Maxing out your 401(k) is a strong foundation.
But calm comes from clarity, and clarity comes from planning.
Plan First. Live Calm.
Want clarity on whether your 401(k) is truly optimized?
We’ve created a simple 401(k) Optimization Checklist to help you confirm you’re capturing opportunities—not leaving them behind.
Download the checklist and take the first step toward intentional planning.
Plan First. Live Calm.
