The IRS has announced increased catch-up contribution limits for retirement accounts in 2026, allowing workers aged 50 and older to contribute an additional $8,000 to their 401(k) plans, up from $7,500 last year. IRA catch-up limits have also been adjusted upward.
The higher limits are particularly beneficial for workers who started saving later in their careers and are trying to close their retirement savings gap. Financial advisors strongly encourage maximizing these contributions when possible.
