{"id":39995,"date":"2026-01-11T15:11:36","date_gmt":"2026-01-11T15:11:36","guid":{"rendered":"https:\/\/financialrush.com\/?p=39995"},"modified":"2026-01-11T15:11:36","modified_gmt":"2026-01-11T15:11:36","slug":"what-investors-need-to-know-2","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=39995","title":{"rendered":"What investors need to know"},"content":{"rendered":"

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Damircudic | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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As more older Americans near retirement<\/a>, many are eager to boost 401(k) savings<\/a> to combat the rising cost of health care<\/a> and other day-to-day expenses. And for 2026, there are key 401(k) changes<\/a> that investors need to know, financial experts say. <\/p>\n

This year, “small 401(k) details matter more than ever,” said certified financial planner Joon Um with Secure Tax and Accounting in Hayward, California.<\/p>\n

For 2026, you can defer up to $24,500<\/a> into your 401(k) plan, up from $23,500 in 2025. The full plan limit<\/a>, which includes employer matches<\/a>, profit sharing and other contributions, is $72,000.<\/p>\n

There’s also a higher 401(k) catch-up contribution limit<\/a>. In 2026, investors age 50 and older can save an additional $8,000 per year, up from $7,500 in 2025.\u00a0The “super catch-up” limit<\/a> for savers age 60 to 63 remains at $11,250 for 2026.<\/p>\n

Individual retirement account<\/a> contribution limits also rose for 2026. The new cap is $7,500, up from $7,000 in 2025. Investors age 50 and older can make a $1,100 catch-up contribution, up from $1,000 the previous year. <\/strong> <\/p>\n<\/div>\n

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Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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The latest 401(k) changes<\/a> come as many older Americans don’t feel ready<\/a> for their golden years. <\/p>\n

More than one-third of U.S. adults have delayed or plan to delay retirement<\/a>, according to a New York Life survey that polled roughly 2,300 adults in September. The top two reasons were not enough savings and inflation.<\/p>\n

So-called “defined contribution plans,” which include 401(k)s, are the primary retirement savings tool for many private sector U.S. workers. These plans covered more than 100,000 million <\/a>participants in 2023, according to a September report from the Department of Labor.<\/p>\n<\/div>\n

Most don’t max out 401(k) plans<\/h2>\n
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“Higher [401(k)] deferral limits are helpful, but only if contributions are actually adjusted,” Um said.<\/p>\n

In 2024, some 45% of participants <\/a>boosted 401(k) deferrals \u2014 on their own or as part of their plan’s automatic increases<\/a> \u2014 according to Vanguard’s 2025 How America Saves report, which is based on more than 1,400 plans and nearly 5 million participants.<\/p>\n

However, only 14% of participants maxed out their 401(k)s<\/a> in 2024, and the average combined savings rate<\/a>, including employer deposits, was an estimated 12%, according to the same report.\u00a0<\/p>\n

“We’re encouraging clients to revisit this early in the year,” Um said.<\/p>\n<\/div>\n

Roth catch-up contributions for higher earners<\/h2>\n
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If you’re age 50 and older, your 401(k) catch-up contributions can be traditional pretax or after-tax Roth, depending on what your plan allows.\u00a0<\/p>\n

But starting in 2026, certain higher earners must make Roth catch-up contributions<\/a>, based on a Secure 2.0 Act<\/a> of 2022 change.\u00a0\u00a0\u00a0<\/p>\n

Neil Krishnaswamy, a CFP and president of Krishna\u00a0<\/em>Wealth Planning in McKinney, Texas, has talked with clients about the 401(k) change. <\/p>\n

In 2026, your 401(k) catch-up contributions generally must be Roth if you earned more than $150,000<\/a> from the same employer in 2025. You can find out if this applies to you by reviewing the gross income on your final 2025 paystub, Krishnaswamy said.<\/p>\n

But the “Roth mandate” doesn’t apply this year if you started a new job on Jan. 1, 2026, “even if you earned $1 million at your previous firm,” he said. You’re also exempt if you exceeded the $150,000 threshold via multiple employers.\u00a0\u00a0<\/p>\n<\/div>\n

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