Saving for retirement is a career-long marathon, but the strategy you used as a resident or junior manager shouldn’t be the same one you use as a Director or VP.

For many high-income professionals, the 401(k)—or similar plans like the 403(b) for our medical clients—remains the engine of their retirement nest egg. However, as you move through your prime earning years (ages 40–60), your goals, tax situation, and contribution limits evolve.

So, how do you know if you are truly “on track”?

The Benchmarks: Are You hitting the Marks?

Rather than fixating on a final “magic number,” it is often more helpful to track your progress against your current salary. While these are broad rules of thumb, they serve as excellent checkpoints:

• By Age 35: Have you saved 1x to 2x your annual salary?
• By Age 50: Aim for 3x to 6x your annual salary.
• By Age 60: The goal increases to 6x to 11x your annual salary.

Note: For high earners, hitting “10x salary” in a 401(k) alone is mathematically difficult due to contribution caps. This is where your brokerage accounts, real estate, and other assets complete the picture.

Early Career: The Advice You Give Your Juniors

You are likely past this stage, but it’s worth noting for the younger associates you mentor or your children entering the workforce.

• The Goal: Establishing the habit.
• The Strategy: Even small contributions matter because they have decades to compound.
• The “Free Money”: Always contribute enough to get the full employer match. Anything less is leaving part of your compensation on the table.

Mid-Career: The Power of Maxing Out

Now we are talking about your current reality. As your income rises, so does your tax liability. Maximizing your pre-tax 401(k) contributions is one of the few remaining ways to lower your taxable income at the top marginal brackets.

• The 2026 Standard: For 2026, the IRS has raised the contribution limit to $24,500.
• The Strategy: If you haven’t adjusted your automated contributions recently, you might be stuck at last year’s limit ($23,500). Log in and bump it up to ensure you capture that extra $1,000 of tax-advantaged space.

The “Home Stretch” (Age 50+): New Rules for 2026

This is where the landscape has shifted significantly for high earners.

1. The “Catch-Up” Opportunity

Once you turn 50, the IRS allows you to save even more. For 2026, the standard catch-up contribution is $8,000, bringing your total potential 401(k) contribution to $32,500.

• Pro Tip: If you are between ages 60 and 63, a new “Super Catch-Up” allows you to contribute $11,250 extra instead of $8,000.

2. The New “Roth Catch-Up” Mandate

Starting in 2026, a major change from the SECURE 2.0 Act takes effect. If you earned more than $150,000 in FICA wages in the previous year (2025), your catch-up contributions must be made as Roth (after-tax) contributions.

• What this means: You lose the immediate tax deduction on that extra $8,000, but that money (and its growth) will be tax-free when you withdraw it in retirement.
• Action Item: Check your first few pay stubs of 2026 to ensure your payroll department is correctly categorizing these contributions.

A Note on Asset Allocation

Finally, don’t let your “busy-ness” compromise your portfolio.

• Rebalance: If the market has had a great run, your portfolio might be overweight in equities, exposing you to more risk than you intended.
• Company Stock: For our executive clients, be wary of holding too much company stock in your 401(k). If your salary, bonus, and retirement depend on one company’s performance, you are taking on concentrated risk.

The Bottom Line

Your 401(k) is likely the oldest investment account you own. Treat it with the respect it deserves. Ensure your contribution rates are updated for the 2026 limits and that your asset allocation still matches your retirement timeline.