2 Big 401(k)s Changes Everyone 50 and Over Needs to Know About in 2026

By the time your 50s roll around, it's time to get serious about retirement savings if you haven't been prioritizing your nest egg already. That's because you may only have about another decade of earning years ahead of you.

The good news is that retirement accounts like IRAs and 401(k)s let you make catch-up contributions if you're 50 or older. That's a great way to boost savings and make up for years when you perhaps weren't able to contribute toward your nest egg.

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This year, though, the rules for making 401(k) plan catch-ups are changing. And it's important to know what they entail.

1. The catch-up limit is higher

In 2025, workers 50 and older were allowed to make a $7,500 catch-up contribution to their 401(k) plans. This year, though, the catch-up limit is $8,000, giving older workers even more opportunity to sneak money into their 401(k)s.

There's also a relatively new super 401(k) catch-up for workers between the ages of 60 and 63. That super catch-up is worth $11,250, and it replaces the $8,000 general catch-up for older workers. Put another way, if you're 60 to 63 years old, you can't make a 401(k) catch-up of $11,250 plus another $8,000 on top of that.

You should also know that you don't have to be "behind" on retirement savings to make catch-up contributions. You could have a $3 million IRA or 401(k) balance and still be eligible for a catch-up contribution this year as long as you'll be 50 or older by Dec. 31.

2. Higher earners have a new restriction

If you're someone who earns $150,000 or more, you can still make catch-up contributions to your 401(k) this year if you're 50 or older. But at that income threshold, your only option for making catch-ups will be to fund a Roth 401(k).

Unlike traditional 401(k)s, Roth 401(k)s are funded with after-tax dollars. However, investments in a Roth 401(k) get to grow tax-free, and withdrawals are tax-free in retirement. You also won't have to take required minimum distributions from a Roth 401(k).

To be clear, this new rule only applies to 401(k) catch-ups for higher earners. If your income is $150,000 or more, you can make your regular 401(k) contribution in a traditional retirement plan. The general 401(k) contribution limit is $24,500 in 2026.

So let's say you have a $180,000 income and want to max out your 401(k) this year. You could put $24,500 into a traditional 401(k), but you need to put the $8,000 catch-up into a Roth. This also means that if your company doesn't offer a Roth 401(k), you may not be eligible for a catch-up contribution despite being old enough.

It's important to stay informed about changes to 401(k), since the rules can update every year. Keep these points in mind in 2026 so you can make the most of your workplace retirement plan.

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