A Roth 401(k) is a good option for workers who have access to this retirement plan through their employer and expect to be in a higher tax bracket when they retire. As a bonus, contribution limits for 2026 have increased.
The maximum amount you can contribute to your 401(k) plan in 2026 is $24,500, up from $23,500 for 2025 (if you're younger than age 50), per the IRS. This is an extra $1,000 over 2025. If you're age 50 or older, the standard catch-up contribution limit rises to $8,000 in 2026 (up from $7,500 in 2025). That's a total of $32,500 in 2026, up from $31,000 last year.
