Summary:
Workplace retirement accounts operate similarly for all ages, with contribution limits increasing over time. Catch-up contributions are available for workers over 50, but a new rule in 2026 may limit this tax break for some. Individuals under 50 can save up to $24,500 in their 401(k)s in 2026, with additional catch-up contribution options for older workers. Starting in 2026, high earners may be required to make catch-up contributions on a Roth basis, impacting their tax bill. Lower-income workers can still choose between tax-deferred or Roth contributions. Traditional and Roth 401(k) options are available, with changes affecting high earners.

Summary:
Catch-up contributions are an additional option for workers 50 and older, with two tiers available in 2026. Individuals aged 50 to 59 and 64 and older can make up to $8,000 in catch-up contributions, while those aged 60 to 63 can make an $11,250 super catch-up contribution. Workers who earn over a certain amount will be required to make catch-up contributions on a Roth basis starting in 2026, potentially affecting their tax situation. The $150,000 income limit determines eligibility for traditional 401(k) catch-up contributions, with the possibility of changes in future years due to inflation.

Read more at Nasdaq: This 2026 Retirement Rule Change Could Have Some Older Workers Bracing for Higher Taxes