Maximizing Your 2026 Retirement Contributions
Robert opened his retirement account statement in November and felt a surge of satisfaction. At 61, he had finally hit his stride financially. His salary was higher than ever, his kids were out of college, and he could afford to save aggressively for the next three or four years before retirement.
He had set his 401(k) contributions to max out the standard limit plus the catch-up contribution. Then his colleague mentioned something over lunch that stopped him cold: “Did you know we can contribute way more than the regular catch-up now? Something about a super catch-up for people our age.”
Sure enough, Robert had been eligible all year to contribute more in catch-up contributions instead of the amount he had been contributing. He had left over 3 thousand dollars on the table because he didn’t know about the new rule.
The 2026 Contribution Limits
Every year, the IRS adjusts contribution limits for retirement accounts to keep pace with inflation. For 2026, according to IRS Notice 2025-67, the limits increased meaningfully across the board.
The standard 401(k) contribution limit rose to $24,500, up $1,000 from 2025. This applies to 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan.[1]
IRA contribution limits also increased to $7,500, up from $7,000 in 2025. This applies to both traditional and Roth IRAs combined.
If you’re 50 or older, you can contribute an additional $8,000 in catch-up contributions to your 401(k), up from $7,500 in 2025. This brings your total potential 401(k) contribution to $32,500 for 2026.
For IRAs, the catch-up contribution for those 50 and older increased to $1,100. This means you can contribute a total of $8,600 to an IRA in 2026 if you’re 50 or older.
The Super Catch-Up: A Game Changer for Ages 60-63
Here’s where it gets interesting. Thanks to the SECURE 2.0 Act, workers aged 60 to 63 can contribute significantly more than the standard catch-up amount.
For 2026, if you’re between ages 60 and 63, you can contribute up to $11,250 in catch-up contributions instead of the standard $8,000. That’s an extra $3,250 annually compared to workers who are 50-59 or 64 and older.
This brings your total potential 401(k) contribution to $35,750 if you’re in this age range and your plan allows it. Over four years (ages 60-63), that’s an additional $13,000 you can save compared to the standard catch-up provisions.
“The super catch-up provision recognizes reality,” says Gary Isler, Senior Vice President at David Lerner Associates.
“People in their early 60s are often in their peak earning years. Their kids may be grown, mortgages may be paid off, and they can afford to save more. Catch-up contributions can help make up for lost time and build a more secure retirement in those critical final working years.”
Important Limitation: Check Your Plan
Not all employer plans have implemented the super catch-up provision yet. The SECURE 2.0 Act made it available, but it’s optional for employers.
Check with your human resource department or plan administrator to confirm whether your plan allows the higher catch-up contributions for ages 60-63. If your plan hasn’t been updated yet, consider discussing it with your HR team. Many employers simply haven’t gotten around to implementing the change.
Strategies for Maximizing Your Contributions
Simply knowing the limits isn’t enough. You need a strategy to actually max them out.
Front-load contributions if possible.
The earlier in the year you contribute, the more time your money has to grow. If you can afford to contribute more in January through June, do it. You’ll get six extra months of market exposure on that money.
Increase contributions with raises.
Got a raise? Think about increasing your 401(k) contribution by at least half the raise amount. You probably won’t miss money you never saw in your paycheck, and your retirement account will grow faster.
Use windfalls strategically.
Bonus? Tax refund? Inheritance? Consider making a lump sum contribution to your IRA or increasing your 401(k) contribution rate temporarily to reach the annual maximum.
Don’t forget the employer match.
Before worrying about maxing out contributions, make sure you’re getting the full employer match. That’s free money. If your employer matches 50% of contributions up to 6% of salary, contribute at least 6%.
Contribute to both 401(k) and IRA.
The limits are separate. You can max out both a 401(k) and an IRA in the same year.
Traditional vs. Roth Contributions
For most accounts, you can choose between traditional (pre-tax) and Roth (after-tax) contributions.
Traditional contributions reduce your taxable income now, but you’ll pay taxes on withdrawals in retirement. Roth contributions don’t reduce current taxes but qualified withdrawals in retirement are tax-free.
The right choice depends on your current tax rate versus your expected tax rate in retirement. If you expect to be in a higher tax bracket in retirement, Roth makes sense. If you expect a lower bracket, traditional is better.
You may want to consider a mix of both to provide tax diversification in retirement. Having both traditional and Roth accounts gives you flexibility to manage your tax liability in retirement.
Don’t Leave Money on the Table
A mistake of not knowing about the super catch-up provision costs real money. But the more common mistake is simply not contributing as much as you can afford.
Review your budget honestly. Can you increase your contribution rate by even 1% or 2%? That small change compounds dramatically over time. If you’re in the 60-63 age range, this is your window. You can contribute more in these four years than at any other point in your career. Don’t waste it.
Check your payroll deductions now. Confirm your plan allows the super catch-up if you’re eligible. Make sure you’re on track to maximize contributions for 2026.
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
The subject of this article is fictitious and created for illustrative purposes only. It is based on events of a similar nature and should not be interpreted as a direct depiction of any specific individual, organization, or incident. Any resemblance to actual persons, living or deceased, or actual events is purely coincidental.