New 401(k) Contribution Limits for 2026

The IRS has announced the new 401(k) contribution limits for 2026, providing an opportunity for retirement savers to increase their contributions and strengthen their financial future. Understanding the new 401(k) updates is essential for anyone looking to maximize tax-advantaged retirement savings and help stay on track to meet long-term financial goals.

At JTM Williams Capital Management, we are here to guide you every step of the way. With free consultations to review your current strategy, answer your questions, and create a personalized plan that aligns with your financial goals.

We understand that navigating changes to retirement savings rules can feel overwhelming. In this blog, we will give a breakdown of the new 401(k) contribution limits for 2026. 

Higher 401(k) Contribution Limits for 2026

For 2026, the IRS has raised the employee deferral limit for 401(k) plans to $24,500 (up from $23,500 in 2025.) 

These new limits also apply to 403(b) plans, most 457 plans, and the federal Thrift Savings Plan. By contributing the maximum allowable amount, savers can take full advantage of the tax-deferred growth these accounts provide, helping them accumulate wealth faster over time. Increasing contributions to align with the new 401(k) contribution limits for 2026 is especially important for early and mid-career professionals, as consistent contributions combined with compound interest can result in substantial retirement savings over decades.

Catch-Up Contributions for Savers 50 and Older

The new 401(k) contribution limits for 2026 also include updates to catch-up contributions for employees aged 50 and older. The catch-up contribution limit will increase to $8,000 in 2026, (up from $7,500 in 2025.)

This adjustment provides a significant opportunity for older savers to accelerate their retirement savings as they approach retirement age. 

Additionally, individuals aged 60 to 63 can contribute even more, up to $11,250, thanks to provisions enacted under the Secure 2.0 Act. These catch-up contributions are in addition to the $24,500 standard deferral limit, allowing eligible savers to save a substantial amount each year and potentially reduce their taxable income.

Updated IRA and Roth IRA Limits

Alongside the 401(k) updates, the IRS has also revised individual retirement account (IRA) contribution limits and raised the income thresholds for Roth IRA eligibility in 2026. Savers should review these changes carefully to help make sure they are contributing as much as possible within the new limits. Maximizing contributions to both traditional IRAs and Roth IRAs can provide additional tax diversification and flexibility in retirement.

By taking advantage of the new 401(k) contribution limits for 2026 and the updated IRA rules, investors can make meaningful progress toward long-term financial goals while minimizing tax liabilities.

Strategies to Maximize Retirement Savings

To make the most of the new 401(k) contribution limits for 2026, savers should consider the following strategies:

• Increase your 401(k) contributions to the new deferral limit of $24,500. Even a small increase can have a significant impact over time.

• Take full advantage of catch-up contributions if you are aged 50 or older, especially if you are behind on retirement savings.

• Review IRA contributions and consider both traditional and Roth accounts to maximize tax-advantaged savings.

• Consult a financial advisor to create a retirement plan tailored to your goals, income, and risk tolerance.

Retirement Planning with JTM

At JTM Williams Capital Management, we specialize in helping clients navigate changing retirement plan rules, optimize contributions, and develop personalized strategies that maximize savings while minimizing taxes. Whether you are an early-career professional, mid-career investor, or nearing retirement, understanding and leveraging the new 401(k) contribution limits for 2026 can be a game-changer for your financial future.

Contact us today to review your retirement strategy and make sure you’re positioned to take full advantage of the new 401(k) contribution limits for 2026. We aim to help you create a comprehensive plan to maximize your retirement savings and reach your long-term financial goals.