Michael McGowen, AIF, Lead Advisor
As we roll into 2026, it’s always a great idea to schedule your annual health checkup and your personal finance checkup!
The big question is likely- “Am I saving enough for retirement?” While the answer is likely “it depends,” the increases in the 2026 contribution limits should help you out.
For 2026, the standard 401(k) contribution limit increased by $1,000 to $24,500 (the previous annual increase was $500). This is a nice jump!
The catch-up limits for those age 50+ increased to $8,000. The Secure Act “super catch-up” remained the same at $11,250 for ages 60-63. These higher limits allow for greater retirement savings, with the overall limit (employee + employer) rising to $72,000.
One big change impacting catchup contributions went into effect on January 1st 2026, per the Secure Act 2.0 legislation. If an employee earned more than $150,000 in FICA wages in the prior year (2025), he/she will need to make catch-up contributions on a Roth basis.
Please contact us if you’d like to learn more about the ramifications of Secure Act 2.0 and how this may influence executive compensation strategies.
Key 2026 Contribution Limits
- Standard Employee Contribution: $24,500 (up from $23,500).
- Age 50+ Catch-Up: An additional $8,000 (up from $7,500).
- Ages 60-63 “Super Catch-Up”: An additional $11,250 (in lieu of the standard catch-up) if the plan allows.
- Total (Employee + Employer) Limit: $72,000 (up from $70,000).
Next Steps
Try to save a little more than you did last year. Even a 1% annual increase will have a dramatic impact on your retirement savings. If you maxed out last year, run the numbers to see if you can contribute to the higher limits.
Update your contribution elections online or contact your HR department to take advantage of the new limits.
Happy saving!
