401(k) contribution limits higher in 2026 but maxing out remains tough

According to aol.com, the IRS raised the employee 401(k) deferral limit from $18,000 in 2016 to $24,500 in 2026. For workers aged 50 and older, catch-up contributions increased from $6,000 to $8,000, making their total maximum $32,500.

Despite these higher limits, the article explains that maxing out a 401(k) remains difficult for the average American. The increase in contribution limits does not necessarily translate to increased savings for many individuals.

The report also highlights that since 2025, an additional “super catch-up contribution” option has been introduced, potentially allowing older workers to save even more, although details on its impact were not provided in the source.

Overall, while higher contribution limits could benefit savers, affordability and other factors continue to make reaching these maximums a challenge for many people.