Overview
- In 2026, the 401(k) contribution cap rises to $24,500 and the IRA limit increases to $7,500, with the IRA catch-up set at $1,100 for those 50 and older.
- Under Secure 2.0, workers age 50+ who earned more than $150,000 last year must make 401(k) catch-up contributions on a Roth basis using after-tax dollars.
- Advisers urge workers to capture the full employer 401(k) match because it functions as immediate, high-value compensation that many savers leave on the table.
- Experts recommend directing a portion of any pay raise to retirement contributions, such as boosting a 401(k) rate by 1% after a 3% salary increase.
- To avoid common setbacks identified in a recent Credit Karma survey, planners suggest automating savings and adding friction to impulse purchases, such as not storing payment details online.