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As more and more older Americans approach retirement, many are looking to increase their 401(k) savings to combat rising medical costs and other everyday expenses. And heading into 2026, there are important 401(k) changes investors should know about, financial experts say.
This year, “the little details of your 401(k) are more important than ever,” says certified financial planner Jun Um of Secure Tax and Accounting in Hayward, California.
In 2026, you can defer up to $24,500 into your 401(k) plan, up from $23,500 in 2025. The overall plan limit, including employer matching, profit sharing, and other contributions, is $72,000.
Catch-up contribution limits for 401(k)s are also higher. In 2026, investors age 50 and older will be able to save an additional $8,000 a year, up from $7,500 in 2025. The “super catch-up” limit for savers aged 60 to 63 will remain at $11,250 in 2026.
The contribution limits for individual retirement accounts were also increased in 2026. The new cap is $7,500, up from $7,000 in 2025. Investors age 50 and older will be able to contribute an additional $1,100, up from $1,000 the previous year.
The latest 401(k) changes come as many older Americans feel unprepared for their golden years.
More than one-third of American adults have delayed or plan to delay retirement, according to a New York Life survey of nearly 2,300 adults conducted in September. The top two reasons were not having enough savings and inflation.
So-called “defined contribution plans,” including 401(k)s, are the primary retirement savings tool for many private-sector U.S. workers. These plans will cover more than 100 million participants in 2023, according to a September report from the Labor Department.
In most cases, your 401(k) plan will not reach its maximum value
“Higher (401(k)) deferral limits are helpful, but only if contributions are actually adjusted,” Um said.
In 2024, about 45% of participants increased their 401(k) deferrals either on their own or as part of the plan’s automatic increases, according to Vanguard’s 2025 “How America Saves” report. The report is based on more than 1,400 plans and nearly 5 million participants.
However, the same report found that only 14% of participants maxed out their 401(k)s in 2024, and the average savings rate, including employer savings, was an estimated 12%.
“We encourage customers to reconsider this early this year,” Um said.
Roth catch-up contributions for high-income earners
If you’re 50 or older, your 401(k) catch-up contributions can be traditional pre-tax or after-tax Roth, depending on the plan.
But starting in 2026, certain high-income earners will be required to make Roth catch-up contributions under changes in the 2022 Secure 2.0 Act.
Neil Krishnaswamy, a CFP and president of Krishna Wealth Planning in McKinney, Texas, talks to clients about 401(k) changes.
If you earned more than $150,000 with the same employer in 2025, your 401(k) catch-up contribution in 2026 must generally be a Roth. Krishnaswamy says you can check whether this applies to you by checking your gross income on your final payslip for 2025.
But if you start a new job on January 1, 2026, the “Roth obligation” won’t apply to you this year, “even if you earned $1 million at your previous company,” he said. Exceeding the $150,000 threshold through multiple employers is also exempt.
