The 401k contribution limits 2026 are rising to $24,500, marking a $1,000 increase that could substantially boost your retirement savings. This change offers real opportunities to maximize our nest eggs for those of us planning ahead.
Our financial planner in Fresno CA understands that catch-up contributions for workers aged 50 and over are increasing to $8,000, up from $7,500 for 2025. There’s a major catch though: if you’re a high earner making $150,000 or more in FICA-taxable earnings, your catch-up contributions must now go into a Roth 401(k) with after-tax dollars.
2026 401(k) contribution limits: what’s changing
Employees under age 50 can defer up to $24,500 in salary to their 401(k), 403(b), or governmental 457 plans. This represents a $1,000 jump from the 2025 limit of $23,500.
The catch-up contribution rises to $8,000 for workers aged 50 and older, up from $7,500 in 2025. This brings the total possible employee contribution to $32,500 for this age group. You can take advantage of an even higher super catch-up contribution of $11,250 if you fall within the 60 to 63 age range. This provision allows you to contribute a total of $35,750 in employee deferrals alone.
The new Roth catch-up rule for high earners
A most important rule change affects how we make catch-up contributions if our earnings exceed certain thresholds, starting in 2026. If you’re 50 or older and your Federal Insurance Contributions Act (FICA)-taxable earnings are $150,000 or more, any catch-up contributions to your 401(k) will have to be made to a Roth 401(k) with after-tax dollars.
The rule is based on your prior year W-2 form from the employer sponsoring the plan. The change applies to you for the 2026 tax year if you earned $150,000 or more for tax year 2025. Check Box 3 on your W-2 to determine your FICA wages.
Smart strategies to maximize your retirement savings in 2026
Maximizing your retirement savings requires more than knowing the 401k contribution limits 2026. Start by contributing early in the year. The longer our money stays invested, the more it benefits from compound returns.
Capture the full employer match first. Companies often match 50 cents or $1 for each dollar you contribute, up to 6% of your total pay. This is money we don’t have to supply ourselves.
Work toward saving at least 15% of your income each year, including employer contributions. If that seems steep, increase your contribution rate by 1% each year or whenever you receive a raise.
Conclusion
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to see how we can help you Retire ”Your Way!”
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Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. This commentary reflects the personal opinions, viewpoints and analyses of the author, Dale Soutas. It does not necessarily reflect the views of Foundations Investment Advisors, LLC (“Foundations”) and is provided for educational purposes only and the contents are solely maintained by and the responsibility of the applicable 3rd party. The 3rd party content is subject to change at any time without notice, and does not represent an express or implied opinion or endorsement of any specific investment opportunity, investment strategy or planning strategy. Foundations in no way deems reliable any statistical data or information obtained from or prepared by third party sources in this commentary, nor does Foundations guarantee its accuracy or completeness. No legal or tax advice is provided or intended.
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