New rules also affect catch-up contributions, go into effect Jan. 1
Workers will be able to put up to $24,500 into their 401(k)s and similar workplace retirement accounts in 2026, up $1,000 from this year, the Internal Revenue Service said Thursday.
The accounts are the main way Americans save for retirement, and the limits on annual contributions are raised every year to adjust for inflation. Around 70% of private-sector employees in the U.S. now have access to a 401(k)-style retirement plan, though just a fraction of those max out their contributions each year.
For IRAs, the maximum contribution will rise to $7,500 in 2026, from $7,000.
Limits on 401(k) and IRA contributions are higher for older workers.
For 401(k)s, people 50 and older will be able to contribute an extra $8,000 in 2026, for a total of $32,500. Those age 60 to 63 will be able to contribute even more, for a total of $35,750.
For 401(k)s, people 50 and older will be able to contribute an extra $8,000 in 2026, for a total of $32,500. Those age 60 to 63 will be able to contribute even more, for a total of $35,750.
For IRAs, those 50 and older will be able to contribute an extra $1,100. The IRA catch-up contribution—long $1,000—is now being adjusted for inflation under a provision of a 2022 law.
That law also ushers in a change affecting 401(k) catch-up contributions for high earners.
Under it, those who earned more than $150,000 in 2025 generally must funnel their 401(k) catch-up dollars into an after-tax Roth 401(k) account.
Many higher earners try to max out contributions to traditional 401(k) accounts to benefit from the upfront tax deductions they offer. Ordinary income tax applies to withdrawals, and many assume they will be in lower tax brackets by the time they are retired and taking money out of the accounts.
Still, financial advisers say it might be beneficial for some high earners to put some after-tax money into a Roth, where it can grow and be withdrawn tax-free.
Retirees can use Roth withdrawals to keep their taxable income below thresholds at which higher tax rates and Medicare premiums kick in.
In 2026, high earners whose employers don’t offer a Roth 401(k) won’t be able to make catch-up contributions at all. Among the 401(k) plans Vanguard administers, 86% offered a Roth last year, up from 74% in 2020.
In 2026, high earners whose employers don’t offer a Roth 401(k) won’t be able to make catch-up contributions at all. Among the 401(k) plans Vanguard administers, 86% offered a Roth last year, up from 74% in 2020.
The Roth requirement for high earners’ 401(k) catch-up dollars doesn’t apply to IRAs.
In some 401(k) plans, workers are able to save as much as $70,000 a year. That is usually the result of big matching contributions from employers or a provision allowing workers to make after-tax contributions.
In some 401(k) plans, workers are able to save as much as $70,000 a year. That is usually the result of big matching contributions from employers or a provision allowing workers to make after-tax contributions.
Next year, that total will rise to $72,000, with those eligible for catch up contributions able to put in up to $11,250 more, depending on their age.
Inflation adjustments also apply to tax brackets and other items. The IRS announced those in October.
Inflation adjustments also apply to tax brackets and other items. The IRS announced those in October.