A number of changes are coming to 401(k) plans in 2026, including higher contribution limits for all account holders. The amount individuals can contribute to their 401(k) plans will rise to $24,500 in 2026 from $23,500 for 2025, according to the IRS. Trending Now: Suze Orman Says If You’re Doing This, You’re ‘Making the Biggest Mistake in Life’ Try This: 6 Things You Must Do When Your Savings Reach $50,000 Another change, included in the Secure 2.0 Act of 2022, targets high earners over 50 only. This ch ...

Core Insights - The article discusses the growing popularity of Roth 401(k) plans and highlights the importance of considering them for retirement savings [2][3] Group 1: Roth 401(k) Plans - Roth 401(k) plans have become more popular, with 85% of employer-sponsored plans offering this option, yet only 18% of employees utilize it [2] - Unlike Roth IRAs, Roth 401(k) plans do not have income limits, making them accessible to high earners [4][5] - Contributions to Roth 401(k) plans are made with after-tax dollars, allowing for tax-free withdrawals in retirement if certain conditions are met [6][7] Group 2: Expert Opinions - Personal finance expert Suze Orman emphasizes the advantages of Roth 401(k) accounts, arguing that individuals should prioritize them regardless of their tax bracket [5] - Orman warns that traditional 401(k) plans, while providing upfront tax benefits, can lead to tax liabilities upon withdrawal in retirement [6]

Core Insights - The article discusses various strategies for individuals to accumulate wealth, particularly emphasizing the importance of reaching the first $100,000 in savings as a significant milestone for financial freedom [4][5]. Group 1: Investment Strategies - Acorns is highlighted as a robo-investing app that helps users invest spare change from everyday purchases by rounding up transactions to the nearest dollar and investing the difference into diversified ETFs [1][6]. - Investing $833 monthly can lead to reaching $100,000 in just over seven years, leveraging the historical 10.26% compounded annual return of the S&P 500 since 1957 [2][3]. - The concept of a tipping point in wealth accumulation is introduced, where earnings from previous contributions surpass new contributions, illustrating the power of compound interest over time [3]. Group 2: Real Estate Investment - Real estate is identified as a popular investment option, with 36% of respondents in a Gallup survey considering it the best investment, despite challenges posed by rising housing prices [9]. - Turnkey real estate investments through crowdfunding platforms are presented as a way to invest in real estate without the burdens of property management, allowing investments with as little as $100 [10][14]. - Home Equity Agreements (HEAs) are introduced as a method for investors to gain exposure to real estate markets while minimizing risks associated with traditional property ownership [11][12]. Group 3: Retirement Savings - Utilizing employer-sponsored 401(k) matching programs is recommended as a strategy to accelerate wealth accumulation, with 98% of companies offering some form of matching in 2023 [17]. - The lack of retirement plans in many businesses is noted, with 47% of American workers employed in companies without any retirement plan options [18]. - Self-directed IRAs are suggested as an alternative for individuals without employer-sponsored plans, allowing for greater control over investment choices [19].

When it comes to helping your kids financially, most boomers face a tricky question: how do you transfer money without the IRS taking a huge cut? Read More: How Much You Need To Earn To Be Upper Middle Class in Every State Discover Next: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too I talked with Lance Morgan, financial expert and founder of College Funding Secrets, to find out the smartest strategy. His answer centered on a specific dollar amount that caught me off gu ...

Group 1 - The article emphasizes the importance of maximizing contributions to tax-advantaged accounts such as HSAs, IRAs, and 401(k) plans to benefit from tax breaks [1][3] - In 2026, the maximum contribution limits for HSAs will increase, with $4,400 for self-only coverage and $8,750 for family coverage [7][11] - Individuals aged 55 and older can contribute an additional $1,000 as a catch-up contribution to their HSA [4] Group 2 - It is advised to avoid treating HSAs as regular spending accounts, as the funds can grow tax-free if left untouched [5][8] - Eligibility for HSAs can change annually based on health plan rules, and individuals should verify their eligibility before contributing [9][10] - Funding an HSA when not eligible can lead to tax penalties, highlighting the need for strategic management of HSA accounts [10]

Core Insights - The importance of saving for retirement is emphasized, as it can lead to a more comfortable senior life, especially when considering that Social Security benefits only replace a limited portion of pre-retirement wages [1] Group 1: Retirement Savings Strategies - Claiming the full 401(k) match from employers is crucial to avoid missing out on free money, and employees should understand the match details and any vesting schedules [3][4] - Increasing the savings rate to fully claim the employer match may require adjustments in spending or seeking additional income sources [4][5] - Saving any raises received in 2026, whether cost-of-living or merit-based, is recommended to enhance retirement savings without feeling the impact on current finances [6][7]

Core Insights - The article emphasizes the importance of retirement savings and provides strategies for individuals aged 55 and older who may feel anxious about their retirement savings, particularly if they have $150,000 saved, which is below average for their age group [2][3]. Group 1: Retirement Savings Overview - As of Q3 2025, the average IRA balance is reported at $137,902 and the average 401(k) balance at $144,400, indicating that having $150,000 saved is slightly above average for younger individuals but concerning for those 55 and older [2]. - Individuals aged 55 or older with $150,000 saved may feel panic as they approach retirement, with only a decade or less left in the workforce [3]. Group 2: Strategies for Catching Up - Working longer can significantly aid in catching up on retirement savings, with the potential to extend working years to ages 67 or 68 instead of the traditional 62 or 63 [4]. - Delaying retirement can also allow individuals to postpone their Social Security claims, resulting in larger monthly benefits that can help compensate for lower savings [5]. Group 3: Maximizing Remaining Working Years - Individuals aged 55 and older are eligible for catch-up contributions in IRA or 401(k) plans, which can enhance their savings during the remaining working years [6]. - While maxing out a 401(k) may not be feasible immediately, increasing the savings rate is crucial, which may involve cutting expenses to free up funds for retirement accounts [7]. - Consulting a financial advisor can provide tailored strategies to improve retirement savings and reduce stress related to financial planning [8].

Core Insights - Many American workers are making small deviations in their 401(k) plans that jeopardize their retirement savings [1][2] - A significant knowledge gap exists among workers regarding 401(k) mechanisms, leading to costly mistakes [3] Group 1: Current State of 401(k) Plans - Approximately 92 million Americans have saved over $7 trillion in 401(k) plans, yet many struggle with basic understanding [2] - A study indicates that 85% of plan participants cannot answer fundamental questions about their plans [2] Group 2: Common Mistakes - Ignoring strategic contributions is a prevalent issue, with many workers defaulting to a low contribution rate of around 3% [4][5] - The lack of auto-escalation features in many 401(k) plans means workers may revert to the low default rate when changing employers [5] - A 3% contribution rate could take nearly 38 years to reach $1 million, while increasing it to 5% could achieve the same goal in 32 years, highlighting the importance of adjusting contributions with income increases [5][6]

Gold prices have surged roughly 60% in 2025 — far outpacing the S&P 500’s mid-teens gains this year (5, 6). Many investors see gold as a safe haven during rough economic times, making it a worthwhile consideration when planning your retirement nest egg.Opening a self-directed retirement account like an individual retirement account (IRA) can help you in this case. The main benefit? You can grow your assets tax-free or defer paying tax until you retire.But you might be one of many Americans who don’t have ac ...

Canva | GeorgePeters from Getty Images Signature and 77DZIGN from Getty Images Signature Key Points 401(k) plans typically do not allow individual stocks. This limits the ability to beat market returns. Early withdrawal penalties apply before age 59.5. Exceptions exist if you leave your employer at 55 or later. Direct rollovers avoid penalties better than indirect rollovers when changing jobs. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Am ...