What investors need to know

As more older Americans approach retirement, many are eager to increase their 401(k) savings to combat rising health care costs and other day-to-day expenses. And there are highlights for 2026 401(k) changes Financial experts say investors need to know this.

This year, “the little 401(k) details matter more than ever,” said Joon Um, a certified financial planner with Secure Tax and Accounting in Hayward, Calif.

You can defer up to $24,500 from your 401(k) plan to 2026, down from $23,500 in 2025. full plan limitThe total, which includes employer matches, profit sharing and other contributions, is $72,000.

There is also a higher 401(k) catch-up contribution limit. Investors aged 50 and over will be able to save an additional $8,000 per year in 2026; this rate was $7,500 in 2025. The “super catch” limit for savers ages 60 to 63 will remain at $11,250 for 2026.

Individual retirement account contribution limits also increased for 2026. The new cap increases from $7,000 in 2025 to $7,500. Investors age 50 and over can make catch-up contributions of $1,100, compared to $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 US adults have delayed or plans to postpone retirementAccording to a September New York Life survey of nearly 2,300 adults. The two most important reasons were lack of sufficient savings and inflation.

So-called “defined contribution plans,” which include 401(k)s, are the primary retirement savings vehicle for many private-sector U.S. workers. Under these plans more than 100,000 million Participants in 2023, according to the September report of the Ministry of Labor.

some in 2024 45% of participants They increased their 401(k) deferrals on their own or as part of their plans’ automatic increases, according to Vanguard’s 2025 How America Saves report, based on more than 1,400 plans and nearly 5 million participants.

However, only 14% of participants They maxed out their 401(k) According to the same report, the average combined savings rate, which includes employer deposits, in 2024 was an estimated 12%.

“We encourage our customers to revisit this early in the year,” Um said.

If you’re age 50 or older, your 401(k) catch-up contributions can be traditional pre-tax or Roth after-tax, depending on what your plan allows.

However, starting from 2026, some high-income people Roth catch-up contributions are based on the Secure 2.0 Act of 2022 amendment.

In 2026, your 401(k) catch-up contributions generally must be Roth; Won more than $150,000 Krishnaswamy from the same employer in 2025. He said you can find out if this applies to you by reviewing the gross income on your latest 2025 pay stub.

But if you started a new job on Jan. 1, 2026, “Roth’s mandate” won’t apply this year, “even if you made $1 million at your previous firm,” he said. You’re also exempt if you exceed the $150,000 threshold through more than one employer.