For 2026, 401(k) contribution limits increase to $24,500, with catch-up contribution limits also raised. Catch-up contributions over $145,000 may need to be made to Roth 401(k)s. High earners could face higher taxes. Consider discussing changes with your employer and financial advisor. Roth 401(k)s offer tax benefits. (1)

Roth 401(k) contributions are made with after-tax income, while traditional 401(k) contributions are pre-tax. Withdrawals from Roth 401(k)s are tax-free, with no required minimum distributions. In contrast, traditional 401(k) withdrawals are taxable, with RMDs enforced. Consider the tax implications of your contributions. (2)

If you’re in a higher tax bracket, catch-up contributions to Roth 401(k)s could result in a 32% tax rate. Consider the impact on your retirement planning and consult with your employer about Roth 401(k) options. Plan ahead to maximize your retirement savings under the new rules. (3)

Read more at Yahoo Finance: Big changes hit 401(k)s in 2026, including a major tax shift that could affect some investors