Tax tip: 2026 401(k) limits

Key Concepts

• 401(k): A retirement savings plan sponsored by employers.
• Contribution Limit: The maximum amount of money an individual can contribute to their 401(k) account in a given year.
• Catch-Up Contribution: Additional contributions allowed for individuals age 50 and older.
• Super Catch-Up Contribution: An even larger additional contribution allowed for individuals aged 60-63 (specific to certain plans).

401(k) Contribution Limits for 2026

This report, delivered by Sharon Eper for CNBC, focuses on maximizing 401(k) contributions for the year 2026. The primary message is to increase contributions to take full advantage of available tax benefits and build a stronger retirement fund.

The standard 401(k) contribution limit for 2026 is explicitly stated as $24,500. This figure represents the maximum pre-tax amount an eligible employee can contribute from their salary.

Age-Based Contribution Increases

The report highlights opportunities for increased contributions based on age. Individuals age 50 or older are eligible to make catch-up contributions. While the specific amount of the standard catch-up contribution isn’t detailed, its existence is emphasized as a way to boost savings.

A more substantial opportunity exists for those aged 60 to 63. This demographic can utilize a “super catch-up contribution” allowing them to contribute up to an additional $11,250. This significantly increases the total potential 401(k) contribution for this age group.

Actionable Insight

The core takeaway is a direct call to action: increase 401(k) contributions in 2026, particularly if you are 50 or older, and especially if you fall within the 60-63 age bracket. The report provides specific dollar amounts to guide contribution planning.

Conclusion

Sharon Eper’s report concisely delivers crucial information regarding 401(k) contribution limits for 2026, emphasizing the importance of maximizing savings opportunities based on age. The report’s value lies in its specific figures – $24,500 standard limit, catch-up contributions for 50+, and the $11,250 super catch-up for 60-63 year olds – enabling viewers to proactively adjust their retirement savings strategies.