Core Insights - The 401(k) contribution limits for 2026 will increase to $24,500 from $23,500 in 2025, with catch-up contributions for individuals aged 50 and over rising to $8,000 from $7,500 in 2025 [2] - A significant change for higher-income earners is that starting in 2026, catch-up contributions for those earning over $145,000 will need to be made to Roth 401(k)s, impacting retirement planning strategies [3][4] Contribution Limits - The standard contribution limit for 401(k)s in 2026 is set at $24,500, an increase from $23,500 in 2025 [2] - Catch-up contributions for individuals aged 50 and over will increase to $8,000, while those aged 60 to 63 will have a catch-up limit of $11,250, unchanged from 2025 [2] Impact on Higher-Income Earners - Higher-income individuals earning over $145,000 will be required to make catch-up contributions to Roth 401(k)s starting in 2026, which may lead to increased taxable income in the following tax year [3][4] - This change necessitates a reassessment of retirement planning for higher-income earners who previously relied on pre-tax contributions [3] Roth 401(k) vs. Traditional 401(k) - Contributions to Roth 401(k)s are made with after-tax income, while traditional 401(k) contributions are made pre-tax, reducing taxable income [5] - Withdrawals from Roth 401(k)s are tax-free, and there are no required minimum distributions (RMDs) for Roth accounts [5]