What’s Changing With Retirement and Savings in 2026?
The rules around retirement and long-term savings change regularly, and 2026 brings several important updates that could impact how much you can save and how your money is taxed. From higher 401(k) limits to new Roth rules and the introduction of brand-new savings accounts for children, here’s what you need to know as you plan for the future.
Higher 401(k) Contribution Limits in 2026
If you participate in a workplace retirement plan like a 401(k) or 403(b), you’ll be able to save more in 2026.
- The maximum employee contribution increases to $24,500
- If you’re 50 or older, you can contribute an additional $8,000
- If you’re between ages 60 and 63, you may qualify for an even higher catch-up contribution of up to $11,250
These increases are meant to help workers keep pace with inflation and build stronger retirement savings, especially as they get closer to retirement.
IRA and Roth IRA Updates
Individual Retirement Accounts (IRAs), including Roth IRAs, also see higher limits in 2026.
- The annual IRA contribution limit increases to $7,500
- Those age 50 or older can contribute an extra $1,100
- Income limits for Roth IRA eligibility have increased, which may allow more people to contribute or contribute more than in prior years
If you were previously close to the income cutoff for a Roth IRA, it’s worth checking again in 2026.
A Key Change to Catch-Up Contributions
Starting in 2026, a new rule affects higher-income workers who make catch-up contributions to their workplace retirement plans.
If you earned more than $150,000 in the previous year:
- Catch-up contributions must be made to a Roth (after-tax) account, not a traditional pre-tax account
This means you won’t receive an upfront tax deduction for those contributions, but qualified withdrawals in retirement will be tax-free. For many savers, this changes the balance between paying taxes now versus later and makes tax planning even more important.
Introducing Trump Accounts for Children
One of the most talked-about changes in 2026 is the launch of Trump Accounts, a new type of long-term investment account designed specifically for children.
What are Trump Accounts?
Trump Accounts are savings and investment accounts for children under age 18, intended to encourage early investing and long-term financial growth.
Key details:
- Available starting July 4, 2026
- The child must be a U.S. citizen with a Social Security number
- Parents, grandparents, and others can contribute
- Contributions are limited to $5,000 per child per year
Government contribution:
- Eligible children born between 2025 and 2028 will receive a one-time $1,000 government contribution to help jump-start the account
When can the money be used?
- Funds generally can’t be withdrawn until the child turns 18
- After that, the account follows rules similar to retirement accounts, encouraging long-term use rather than early spending
Trump Accounts are separate from 529 college savings plans and may be used alongside them as part of a broader family savings strategy.
Lakewood Wealth Insights
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