What investors need to know

As more older Americans near retirement, many are eager to boost 401(k) savings to combat the rising cost of health care and other day-to-day expenses. And for 2026, there are key 401(k) changes that investors need to know, financial experts say.

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

For 2026, you can defer up to $24,500 into your 401(k) plan, up from $23,500 in 2025. The full plan limit, which includes employer matches, profit sharing and other contributions, is $72,000.

There’s also a higher 401(k) catch-up contribution limit. In 2026, investors age 50 and older can save an additional $8,000 per year, up from $7,500 in 2025. The “super catch-up” limit for savers age 60 to 63 remains at $11,250 for 2026.

Individual retirement account contribution limits also rose for 2026. The new cap is $7,500, up from $7,000 in 2025. Investors age 50 and older can make a $1,100 catch-up contribution, up from $1,000 the previous year.

The latest 401(k) changes come as many older Americans don’t feel ready for their golden years.

More than one-third of U.S. adults have delayed or plan to delay retirement, according to a New York Life survey that polled roughly 2,300 adults in September. The top two reasons were not enough savings and inflation.

So-called “defined contribution plans,” which include 401(k)s, are the primary retirement savings tool for many private sector U.S. workers. These plans covered more than 100,000 million participants in 2023, according to a September report from the Department of Labor.

“Higher [401(k)] deferral limits are helpful, but only if contributions are actually adjusted,” Um said.

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

However, only 14% of participants maxed out their 401(k)s in 2024, and the average combined savings rate, including employer deposits, was an estimated 12%, according to the same report. 

“We’re encouraging clients to revisit this early in the year,” Um said.

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

But starting in 2026, certain higher earners must make Roth catch-up contributions, based on a Secure 2.0 Act of 2022 change.   

Neil Krishnaswamy, a CFP and president of Krishna Wealth Planning in McKinney, Texas, has talked with clients about the 401(k) change.

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

But the “Roth mandate” doesn’t apply this year if you started a new job on Jan. 1, 2026, “even if you earned $1 million at your previous firm,” he said. You’re also exempt if you exceeded the $150,000 threshold via multiple employers.