2026 401(k) & IRA Limits Are Up—But Maxing Out Can Backfire (3 Rules)

Early Retirement Roadmap · Jan 5, 2026 · 10m

2026 401(k) and IRA contribution limits are rising from 2025—but maxing out can backfire if you’re planning early retirement. In this episode I break down 3 rules to fund the right accounts in the right order.

If you’re aiming to retire before 59½, the “max everything” advice can accidentally:

lock up money when you need flexibility

increase taxes later (required distributions and tax brackets)

make health insurance more expensive by pushing up income (Affordable Care Act subsidies)

In this episode you’ll learn:

When maxing your 401(k) does make sense (and when it doesn’t)

The best “order of…