Workers Age 60-63 Can Contribute $35,750 to 401(k) in 2026

Starting in 2026, workers aged 60 to 63 can contribute a total of $35,750 to their 401(k) accounts, which includes an additional $11,250 from a 'super catch-up' provision. To reach this limit, individuals would need to defer approximately half of the median annual salary of $65,000. Only 16% of eligible workers currently utilize the standard catch-up contribution, with average balances for those aged 60 to 64 at $246,500, falling short of recommended levels. This new contribution limit may significantly impact high earners, as they must place all catch-up contributions into a Roth 401(k), affecting their immediate tax deductions. This matters for ordinary investors as it highlights the challenges of retirement savings and may influence future savings strategies.