You Can Contribute More to a 401(k) in 2026. But Should You?

Core Insights - Workers are encouraged to save for retirement to avoid relying heavily on Social Security, which may not provide sufficient income due to potential benefit cuts and financial shortfalls [1][2] Contribution Limits and Changes - In 2026, the contribution limits for 401(k) plans will increase, allowing savers under 50 to contribute up to $24,500, while those 50 and over can contribute up to $32,500, including a catch-up contribution of $8,000 [4] - Savers aged 60 to 63 will have an even higher limit, with a special catch-up contribution bringing their total to $35,750 for 2026 [5] Considerations for 401(k) Contributions - Despite the increased contribution limits, it may not be advisable for savers to maximize their 401(k) contributions due to potential high fees and limited investment options within employer plans [6][8] - It is recommended that savers evaluate their employer's 401(k) plan before increasing contributions and consider alternative savings options for better investment choices and access to funds [7][8]