The 401(k) Mistake You Can't Afford to Make in 2026

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':"";if(a){var r=n.promos.showYahooLogo?"":"yns-no-logo";a=a.replace("{notifOnboardBtnLabel}",n.promos.notifOnboardBtnLabel).replace("{notifOnboardMsg}",n.promos.notifOnboardMsg).replace("{subscriptionTopic}",n.promos.subscriptionTopic).replace("{noLogoClass}",r).replace("{promoLogo}",n.promos.promoLogo)}var s=t.newCount>n.panel.maxCount?t.newCount:"",c=n.panel.notificationCenterPath,l=c?"":R,u=n.panel.headerMsg?"":" "+R,d=c?H:"",p=void 0;t.count?p=t.markup:p='{emptyPanelMsg}'.replace("{emptyPanelMsg}",n.panel.emptyPanelMsg);return e=e.replace("{notifMarkup}",p).replace("{promoMarkup}",a).replace("{hideClass}",l).replace("{notifCenterLink}",c).replace("{paddingClass}",d).replace("{headerMsg}",n.panel.headerMsg).replace("{hideHeaderClass}",u).replace(/{notificationCenterNavMsg}/g,n.panel.notificationCenterNavMsg).replace(/{newCount}/g,s)}},{key:"render",value:function(e,t){var n=this;if(n._panelNode){var o=void 0,i=n._panelNode,a=void 0,r=void 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n=e.getConfig();"smartphone"===n.device&&("finance"===n.property&&"crunch"===n.ytheme&&e.addElementListener(t.searchInput,"click",(function(){var n,o;n="search_input_focus_click",null!==(o=re())&&(oe[n]||(oe[n]=o)),e.addElementListener(t.searchForm,"click",(function(){if(t.ybar){if(t.ybar.classList.contains("ybar-searchbox-assist-fullscreen"))return;t.ybar.classList.add("ybar-searchbox-assist-fullscreen"),t.ybar.classList.add("ybar-searchbox-assist-fadein")}if(!document.documentElement.classList.contains("ybar-overlay")){document.documentElement.classList.toggle("ybar-overlay"),document.body.classList.add("ybar-overlay-noscroll");te("ybar","websrch","",{elm:"expand",subsec:"searchbox",itc:"1"})}}))})),e.addElementListener(t.searchBoxPlaceholder,"click",(function(){zt(e,t)})),e.addElementListener(t.searchBoxPlaceholder,"keydown",(function(n){var 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If so, congratulations! Only a little more than half of the United States' private sector workers have access to any sort of workplace retirement savings accounts. If you're one of the lucky other half, you might want to make a point of taking full advantage of what plenty of other people can't.There's one particular 401(k) mistake you absolutely don't want to make in 2026, or for that matter, any other year.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »401(k) plans are retirement accounts an employer offers its workers, allowing them to defer a portion of their paychecks into these accounts before it's taxed. Although few people actually "max out" their yearly contributions to these vehicles, they're still popular because these annual contribution limits are quite high. This year's ceiling on elective deferrals is $24,500, and that's even higher if you're over the age of 50.Failing to contribute this maximum isn't the mistake to avoid making, though. Most workers can't afford to do without that much of their paycheck. Rather, the misstep is failing to at least put enough of your own money into a 401(k) account to maximize the amount of money your employer is willing to contribute to the same account on your behalf.Image source: Getty Images.It's true! Although every 401(k) plan is a little bit different, most of them call for an employer match of anywhere between 50% and 100% of the amount of their own money the employee is contributing, up to 6% of those individual workers' salaries.The numbers aren't insignificant. For perspective, mutual fund giant and retirement plan administrator Fidelity reports that employers chipped in an average of $4,920 per employee for the retirement plans it administers last year, or more than half the $9,080 these workers also contributed on their own. That free money is effectively an immediate 54% return on these employees' savings just for contributing to the plan. In the meantime, all this money is invested for growth on behalf of these workers.There is one important footnote to add here. You'll only get to keep all (or some, or any) of your employer's matching contributions -- and any investment gains they produce -- if you've been with the company and participating in its 401(k) plan for long enough.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,814.75 -74.25 (-1.08%)Dow Futures48,510.00 -490.00 (-1.00%)Nasdaq Futures24,673.75 -331.00 (-1.32%)Russell 2000 Futures2,594.40 -40.30 (-1.53%)VIX19.86 +1.23 (+6.60%)Gold5,378.80 +130.90 (+2.49%)Trending tickersBTC-USD Bitcoin USD 66,604.21 -578.07 (-0.86%)CL=F Crude Oil Apr 26 71.52 +4.50 (+6.71%)PLTR Palantir Technologies Inc. 137.19 +1.25 (+0.92%)XOM Exxon Mobil Corporation 152.50 +3.96 (+2.67%)LMT Lockheed Martin Corporation 658.08 +16.45 (+2.56%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)Top economic eventsEarnings eventsMy earnings eventsEarnings events