The IRS has raised 401(k) contribution limits for 2026, giving savers more room to grow retirement funds. The new elective deferral limit is $24,500, letting employees contribute an extra $1,000 pre-tax or Roth — perfect for maximizing tax-advantaged growth.
For individuals age 50 and older, the catch-up contribution jumps to $8,000, so totals can reach $32,500. Some plans offer a “super” catch-up of $11,250 for ages 60—63. If your wages exceed $150,000 in 2025, all 2026 catch-up contributions must be Roth. This shifts immediate tax advantages but provides tax-free qualified withdrawals later.
Review eligibility, explore Roth options, and adjust contributions early in 2026 to make the most of these increases and strengthen your retirement strategy.