401(k) Limits Rise to $24,500 in 2026, Offering New Opportunities to Build Retirement Savings
The IRS raised 401(k) contribution limits to $24,500 for 2026, with an $8,000 catch-up contribution for those 50 and older. Workers aged 60 to 63 can contribute an additional $11,250 under a new 'super catch-up' provision. Financial advisors say the higher limits give savers a real chance to accelerate retirement savings.
The IRS raised 401(k) contribution limits to $24,500 for 2026, giving workers more room to build retirement savings.
Workers aged 50 and older can contribute an additional $8,000 as a catch-up contribution, bringing their total to $32,500. A new "super catch-up" provision allows workers aged 60 to 63 to contribute an extra $11,250, for a total of $35,750.
Financial advisors say the higher limits are a real opportunity, especially for workers who got a late start on retirement savings.
Roth IRA contributions remain an option for those who qualify based on income. Advisors often recommend Roth conversions in lower-income years to pay taxes at current rates and reduce future tax obligations.
The estate tax exemption is also set to increase to $15 million per individual, or $30 million for married couples, in 2026. Individuals can gift up to $19,000 per recipient, or $38,000 for married couples, without incurring gift taxes.
April is National Financial Literacy Month. The Financial Literacy and Education Commission, chaired by the Treasury Secretary, is highlighting resources to help Americans make informed financial decisions.
The FDIC is hosting a national event on April 22 called "Money Smart Moves: Banker Led Strategies for Financial Education and Well Being." The American Bankers Association Foundation is running a "Teach Children to Save" event on April 23 at multiple locations across the country.
Experts say the most important step is to start. Even small, consistent contributions to a retirement account can grow significantly over time through compound interest.
