401(k) Limits for 2026: Lawmakers in Washington are looking at big rule changes that may start in 2026, and many high-income savers are paying close attention. These possible changes come at the same time the SECURE Act 2.0 is already pushing new rules that affect how older workers save extra money. Together, these updates could change how people build retirement money in the next few years.
Why Congress wants New Rules?
A lto fo the workers use 401(k) plans because the money grows without taxes until they take it out. High earners often add the full amount each year since it lowers their taxable income and boosts long-term savings. Some lawmakers say this setup helps the wealthy more than others. One observer even said retirement tax breaks should not create “a supercharged advantage” for wealthy individuals.
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Because of this, Congress is talking about shrinking limits for contributions and changing how catch-up money works. They also want to protect future tax income for the government. If the new changes move forward, the rules for both traditional and Roth 401(k)s could tighten, and older workers might need to put more money into Roth accounts instead of pre-tax ones.
This fits with the SECURE Act 2.0, which already brought major updates when it became law at the end of 2022. That law added new options for IRAs, Roth accounts, and workplace plans so more people can save for retirement.
How does the New Rules Work?
One of the biggest changes from the SECURE Act 2.0 is the new “super catch-up” limit. People aged 60 to 63 will be allowed to add an extra $11,250 to their 401(k) starting in 2025. The IRS also says people over 50 can add $8,000 in 2026.
But a new rule starts in 2026. Anyone over 50 who earns more than $145,000 must put all catch-up money into a Roth 401(k). This sounds small, but it means higher taxes right away because a Roth uses after-tax dollars.
For example, a 60-year-old earning $192,000 who adds the full $11,250 could pay about $3,600 in taxes at a 32% rate. A 51-year-old at a 24% rate might pay $1,920 on an $8,000 catch-up. This could affect millions of workers because many people between 45 and 55 earn above $100,000.
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Here’s what you should do if you are a High Earner
Experts say the first step is to guess how much you will earn in 2026. If you think your income will be higher than $145,000, then the Roth rule may apply to you. It is also important to check if your workplace already offers a Roth 401(k). Most employers do, but not all. Plan Sponsor Council of America says roughly 93% of companies offer one, so it is good to ask your HR team what your options are.
Many high earners are also looking at IRAs, brokerage accounts, real estate, and other investments so they do not rely only on one type of tax plan. A good retirement plan stays flexible since laws can shift at any time.
Some advisors say timing matters as well. If new rules begin in 2026, then money you add before that year may stay under old rules. Because of this, some savers are choosing to add as much as they can now before limits change again.
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