If you're 50 or older, you may be eligible to make extra contributions to your 401(k). Starting in 2026, an important tax rule changes how some employees can make those contributions.
What's changing?
If you earned more than $150,000 from your employer in 2025, your extra 401(k) catch-up contributions in 2026 generally must be made as Roth (after-tax) contributions.
That means you won't get a tax deduction for those extra contributions today, but qualified withdrawals in retirement will be tax-free.
Good news: You can still make your regular 401(k) contributions with pretax dollars.
How much can you contribute in 2026?
Under age 50: Up to $24,500
Ages 50–59 and 64+: Up to $32,500
Ages 60–63: Up to $35,750
These limits assume your employer's plan allows the applicable catch-up contributions.
What should you do?
If you're 50 or older, now is a good time to review your 401(k) elections and make sure your contributions are set up correctly.
Not sure how these changes affect you? The NotchBooks team can help you understand the tax impact and plan accordingly.
