2026 401(k) contribution limits and a case for using market dips

Full analysis

Dr. Guy Baker notes that 401(k) contribution limits for 2026 are $24,500 for most workers, $32,500 for those over 50, and $35,750 for those aged 60 to 63. He argues that a market pullback driven by tariff fears is an opportunity — not a reason to stop contributing — and that anyone not yet at their annual limit should consider increasing contributions while prices are lower. He also recommends harvesting paper losses during volatile periods to offset gains elsewhere, so that repositioning a portfolio does not trigger a large tax bill.