3 Big 401(k) Changes Happening in 2026

One of the best ways to ensure that you're able to enjoy a comfortable retirement is to save well for it. And funding a 401(k) is a great way to achieve that goal.

The nice thing about 401(k) plans is that contributions are deducted from your paychecks automatically. Granted, you could automate contributions to an IRA, too. But with a 401(k), your employer takes care of that for you.

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If you have a 401(k), you should know that the rules are changing in 2026. Here are three important things to keep in mind if you're saving in a workplace retirement plan.

1. Contribution limits are rising for savers under 50

In 2025, savers under 50 can contribute up to $23,500 to a 401(k). In 2026, that limit is rising to $24,500.

Of course, just because that limit is rising doesn't mean you'll be able to take advantage of it. If you can't max out your 401(k), you should, at the very least, aim to save enough to snag your workplace match in full.

So let's say your employer will match 100% of up to $5,000 in contributions. If you only put $3,000 into your 401(k), you'll give up $2,000.

Now that may not seem like a big deal. But do remember that the $2,000 you give up could be invested so it grows into a larger sum over time. For this reason, it pays to do everything possible to claim your full workplace match, whether that means budgeting more carefully or picking up a side gig for extra money.

2. Catch-up contribution limits are rising as well

In 2025, savers 50 and over are eligible for a $7,500 catch-up contribution in 401(k) plans. That brings their total allowable contribution to $31,000.

In 2025, that catch-up is rising to $8,000. So combined with the higher limit for savers under 50, those 50 and over can contribute up to $32,500 to a 401(k) in 2026.

Also remember that beginning this year, savers between the ages of 60 and 63 are allowed to make a $11,250 catch-up instead of the standard amount. That isn't changing in 2026, so people in that age range can contribute $24,500 plus $11,250 for a total of $35,750.

It's also worth pointing out that your ability to make 401(k) catch-ups hinges on your age only -- not your account balance. Catch-ups aren't limited to savers with low 401(k) balances. Anyone who's 50 or older can make them.

3. Higher earners will have to follow new catch-up rules

It's common for higher earners to save for retirement in a traditional 401(k) rather than a Roth 401(k) so they can shield income from taxes year after year. But beginning in 2026, anyone earning $145,000 or more will be limited to Roth 401(k) catch-ups.

In other words, if your salary is $145,000 or higher, you can contribute up to $24,500 to a 401(k) on a pre-tax basis. But if you want to take advantage of catch-up contributions, those need to be made with after-tax dollars.

The good news is that Roth 401(k) funds get to grow tax-free, and withdrawals are tax-free in retirement. Roth 401(k)s also don't force savers to take required minimum distributions in retirement, which gives you more flexibility with your money.

So all told, even if you're forced to make your 401(k) catch-ups Roth-style, that may not be such a bad thing. You may, however, get tripped up if your workplace retirement plan doesn't offer a Roth option.

It's important to keep tabs on 401(k) changes no matter your age or how much you've contributed to your retirement savings to date. Keep these points in mind as you head into the new year so you can make the most of your workplace savings plan.

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