"The $1,000 increase in the base deferral limit sounds modest, but when compounded annually over 10 years, it produces roughly $13,800 in additional retirement assets."
"The catch-up contribution for workers aged 50 and older increased to $8,000 in 2026, allowing a total deferral of $32,500, which can yield approximately $449,000 over 10 years at 7%."
"The SECURE 2.0 super catch-up for workers aged 60 through 63 has a limit of $11,250 in 2026, enabling contributions up to $35,750, yielding roughly $494,000 over 10 years."
"The total additions limit under IRC Section 415(c) rose to $72,000 in 2026, capping all contributions to a defined contribution plan in a single year."
In 2026, the IRS raised the 401(k) employee deferral limit to $24,500, with a notable increase in catch-up contributions for those aged 50 and older to $8,000. The SECURE 2.0 super catch-up allows workers aged 60 to 63 to contribute up to $35,750. Additionally, the total additions limit under IRC Section 415(c) increased to $72,000. These changes emphasize the importance of maximizing retirement contributions, especially for pre-retirees, to enhance future financial security.
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