401k Changes in 2026: Higher Limits, Tax Adjustments

In 2026, 401(k) plans will see significant changes, including new contribution limits and a major tax adjustment for high earners. Those earning over $150,000 will need to make catch-up contributions as after-tax Roth contributions, potentially increasing short-term tax bills but offering long-term tax planning benefits. The employee deferral limit will rise to $24,500, and the catch-up contribution for those 50+ will increase to $8,000, helping savers keep pace with rising incomes and inflation.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.