2026 Year-End Retirement Plan Checklist for Business Owners

The end of the year is a good time to check on your retirement plan, before deadlines and tax filings pile up. This checklist covers what to review with your third party administrator (TPA), using IRS guidance for the figures and rules. Your plan document and your TPA decide how each item applies to your plan.

1. Confirm the 2026 Contribution Limits

The IRS announced that the 401(k) employee contribution limit for 2026 is $24,500, up from $23,500 for 2025. The catch-up limit for employees age 50 and over in most 401(k) plans is $8,000, so participants 50 and older generally can contribute up to $32,500 in 2026. For SIMPLE plans, the IRS announced a 2026 limit of $17,000, with a $4,000 catch-up for most employees age 50 and over.

• Check each owner’s and employee’s year-to-date deferrals against the limit.
• Ask payroll to adjust deferrals if anyone is on track to go over.
• See our page on annual retirement plan contribution limits for more.

2. Review Employer Contributions

Employer contributions, such as a match or profit sharing, depend on your plan design. Before year end, ask your TPA:

• What employer contribution does the plan document call for this year?
• When does it need to be deposited, and how does that affect your tax deduction?
• How is compensation defined for owner contributions in your plan?

3. Plan for Nondiscrimination Testing

The IRS says plan sponsors must test traditional 401(k) plans each year to make sure contributions made by and for rank-and-file employees are proportional to those made for owners and managers. These are the ADP and ACP tests. The IRS lists a failed test as a common 401(k) mistake, and suggests considering a safe harbor plan design or automatic enrollment to help avoid it.

• Ask your TPA for a projection of your test results before December 31.
• Confirm that highly compensated employees are classified correctly. The IRS says this includes any 5% owner and family members treated as 5% owners.
• Ask what your options are if the plan looks like it will fail.

4. Check Your Plan Design and Documents

Ask your TPA whether any plan amendments are needed for 2026, and whether a change in your business, such as new owners, new employees, or a change in entity type, affects the plan. If you are thinking about a different design, such as safe harbor, ask now so you understand the timing rules before the year closes.

5. Gather Your Data for the Annual Filings

The IRS lists several annual filing requirements for plan sponsors. Form 5500 must be filed every year for plans subject to ERISA, and W-2s report each employee’s elective deferrals. The IRS says W-2s are due to employees by January 31 and to the IRS by February 28 following the calendar year. If you need more time on Form 5500, the IRS says Form 5558 provides a 2 1/2-month extension, and must be filed by the last day of the 7th month after the plan year ends.

• Confirm that your census and payroll data are accurate and complete.
• Send year-end payroll files to your TPA promptly.
• Keep a record of plan notices and distributions made during the year.

6. Keep Your Fiduciary File Current

Good records make year-end reviews easier. PlanPerfect offers a fiduciary audit file checklist and a 2026 retirement plan cheat sheet with key dates and limits.

Frequently Asked Questions

Who is responsible for my plan’s compliance?

The IRS says the plan sponsor is responsible for ensuring the plan operates in compliance with the rules for qualified plans. A TPA can handle administration and testing, but the sponsor remains responsible.

What should I bring to a year-end plan review?

Your plan document, year-to-date payroll and contribution records, a current employee census, and a list of any changes in ownership or staffing.

Can I still change my plan this year?

It depends on the change and your plan type. Ask your TPA before the year ends so you know what is still possible.

Schedule a Plan Review

If you want a second set of eyes on your plan before December 31, PlanPerfect’s team handles plan design, administration, and compliance. Visit our contact page to schedule a plan review.