You’ve created breathing room in your budget. Your bills are covered, you’re saving for retirement, and you’re wondering where additional money should go. Should you invest more, pay down your mortgage, or set something aside for another goal? That question matters whether you’ve reached your 401(k) contribution limit or are still working toward it. In 2026, the employee deferral limit is $24,500, with catch-up contributions available to eligible older workers. But an IRS limit doesn’t tell you what your next dollar should accomplish.