Day 6: Boost Retirement Savings
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Welcome to the 7-Day Financial Reset, a weeklong challenge designed to help you start the new year off strong. We’ll guide you through one practical money task each day, so you can build habits that make your finances work better for you.
Let’s talk about goals. According to a recent NerdWallet survey, 19% of Americans plan to increase their retirement savings in 2026. Is that you?
“Whatever you can do, just start now,” says Fahmin Fardous, a certified financial planner based in Parsippany, NJ. “The perfect time doesn't come and if it does come, it comes a little too late.”
These questions can help you figure out where to start today:
- Are you getting free money? Does your employer offer to match a percentage of your 401(k) contribution? “If they are giving you a match and you’re not contributing up to the match, you are essentially losing money,” she says.
- Can you max out? The IRS increased 2026 401(k) contribution limits to $24,500, up $1,000 from 2025. “Let’s take advantage of that,” Fardous says. Consider upping your contribution to the max, she says. If you want to ease in, you can do an automatic increase of 1% every year, she says. And it’s not like open enrollment. You can revisit and increase your contribution amount throughout the year.
- Do you have a Roth IRA? If you’re a HENRY, and you have a 401(k) at work, your income might be too high for you to get a tax deduction for contributing to a traditional IRA, Fardous says. Think about opening a Roth IRA and contributing for tax-free growth, she says.
Single tax filers with a modified adjusted gross income of less than $153,000 can make a full Roth IRA contribution in 2026. (If you’re married filing jointly, your MAGI must be less than $242,000 to make a full contribution.) You can contribute $7,500 in 2026 if you’re younger than 50. If you’re 50 or older, you can contribute $8,600.
- What else can you do? If you make too much to contribute to a Roth IRA, you can think about contributing to a backdoor Roth IRA, Fardous says. If you’ve done all of this and want to boost your retirement savings even more, you can see if your employer offers an after-tax 401(k) option. You can also open a brokerage account if you want to invest further.
The sooner you bump up your retirement contributions, the more time you have for compound interest to work its magic, she says.
Come back tomorrow for the final 7-Day Financial Reset challenge.
» Need to back up a bit? Day 5: Review your beneficiaries
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