How to Make 2026 Your Best Year Yet for Retirement Savings

As the calendar flips to 2026, there's no better time to supercharge your retirement savings. With the welcome increases to contribution limits — $24,500 for 401(k)s, 403(b)s and similar plans, and $7,500 for traditional and Roth IRAs — you now have more room than ever to build a hearty nest egg. Together with catch-up contributions for those 50 and older and super catch-ups for those 60-63, you've got a prime opportunity toward a secure, comfortable retirement.

Whether you're just starting out or closing in on your golden years, making 2026 your breakthrough year starts with taking proactive steps right from the start.

The good news? The best way to make 2026 your breakout retirement-savings year isn't about slaving away for a bigger paycheck or even returning to work. Instead, it's about taking advantage of time-sensitive loopholes and rule changes that all come together in 2026, thanks to SECURE 2.0.

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Find out how more money can land in your accounts in the year ahead, if you take advantage of these smart money moves before December 31, 2026.

• A higher 401(k) contribution limit of $24,500 (up from $23,500 in 2025)
• A permanent "super catch-up" of $11,250 for ages 60–63
• Mandatory Roth catch-ups for high earners
• An expanded Roth match, where your employer can now pay its match into a Roth
• Emergency and penalty-free withdrawal rules that let you save without feeling trapped
• An IRA boost of $7,500 for traditional and Roth IRAs (up from $7,000).
• If you're age 50 or older, catch-up contributions to a Roth IRA of an additional $1,000 per year in 2025 and $1,100 per year in 2026.

When you stack them together correctly, people in their 50s and early 60s can secure $50,000 to $70,000 or more in a single year for the first time — often with little or no reduction in take-home pay.

Leverage the 2026 contribution limits

The IRS bumped up the employee contribution limit for 401(k), 403(b), and similar plans to $24,500 in 2026. That’s a full $1,000 more than you could put away in 2025. That means you now have an extra $1,000 of breathing room to save in your retirement account before you hit the cap. Leave it invested and let it compound for 15–20 years, and that single thousand can easily turn into $8,000–$15,000 (or more) by the time you’re ready to retire.

For both traditional and Roth IRAs, you also get a bump in 2026 of $7,500 for traditional and Roth IRAs (up from $7,000 in 2025). This is especially valuable for those without access to a workplace plan or if you're looking to diversify beyond an employer-sponsored plan. If you're age 50 or older, take advantage of catch-up contributions to a Roth IRA of an additional $1,100 per year in 2026 (up from $1,000 in 2025).

A good habit to develop is to implement automated contributions to ensure you are saving consistently, says Daniel Milan, investment advisor representative and managing partner at Cornerstone Financial Services.

“Ensure that you are at the very least contributing enough of a percentage to your company retirement plan to receive the full match,” Milan said. "But don't stop at the limit. If your plan allows after-tax contributions, you could mega-backdoor up to the $72,000 cap."

Unlock the permanent "super catch-up" for ages 60–63

If you're hitting 60, 61, 62, or 63 in 2026, take advantage of the super catch-up, a permanent $11,250 boost on top of the $24,500 contribution limit. But keep in mind, catch-up contributions in 2026, including the super catch-up for ages 60–63, must be designated as Roth contributions if you're 50 or older and your 2025 wages from your employer exceeded $150,000. These are after-tax contributions now, but qualified withdrawals, including earnings, are tax-free in retirement.

Read: The 2026 Retirement Catch-Up Curveball: What High Earners Over 50 Need to Know Now

Tap into the expanded employer Roth match

Employers can now designate matching contributions straight to your Roth 401(k) under SECURE 2.0 — a feature that's been available since late 2022 but is gaining traction in 2026 as plans fully support it. Previously, matches were always pre-tax. Now, you can elect a Roth 401(k), meaning the "free money" grows tax-free forever with no required minimum distributions (RMDs) needed. Plus, the match vests immediately. For high earners, this pairs very well with Roth catch-ups.

Embrace emergency and penalty-free withdrawal rules

The SECURE 2.0 Act allows you to withdraw up to $1,000 per year from retirement accounts for personal or family emergencies (repaid over three years), use hardship withdrawals without the need for documentation, take up to $22,000 penalty-free after a federally declared disaster or access up to $10,000 if you are a victim of domestic abuse — all without the usual 10% early-withdrawal penalty. These rules can give you the confidence to maximize contributions, knowing that emergencies won't result in costly penalties.

However, if you take money out early for other reasons, generally before age 59-½, you'll typically face a 10% penalty plus taxes. This applies to most retirement plans, including IRAs, 401(k)s, and similar accounts, although some exceptions exist.

Fortify your retirement against economic challenges in 2026

The 2026 retirement landscape may not feel entirely comfortable. A record number of baby boomers are retiring, household budgets are still reeling from higher prices, and Social Security is also struggling. Rather than hoping for the best, the smartest savers are taking action to fortify their retirement, rather than treating it as an afterthought.

Bruce Maginn, an advisor at Solomon Financial, offers this advice. “Consider updating your W-4 withholdings early in 2026 to free up extra cash. A refund at tax time isn’t a bonus; it just means you’ve been loaning money, interest-free, to the federal government. Find your break-even point. This will allow for a small bump in your take-home pay, all of which you can allocate toward retirement savings.”

• Even if inflation cools in early 2026, most economists expect it to settle above the Federal Reserve's 2% target for years to come. To counteract that possibility, consider allocating 5–10% to a low-cost commodity or ETF.
• Next, make 2026 the year you review your portfolio and ask yourself what would happen if stocks dropped 30% right after you retire? Maginn suggests that quarterly portfolio rebalancing can help with retirement savings. “Selling when something is high, and purchasing when something is low, can help when it comes to returns.” Free tools from Kiplinger can help you calculate your savings goals or determine how much you'll need in retirement.
• Milan recommends contributing to an HSA in 2026. “Treat an HSA like a retirement savings tool by investing early and often so that you can use it later in life for medical expenses when medical bills will likely be higher. An HSA offers the holy grail of triple tax benefits where contributions are pre-tax, the funds grow tax-free, and withdrawals are tax-free when used for healthcare.”
• Finally, few families have an inheritance or giving plan. So, use 2026 to get intentional. To lower your taxable income, you can allocate up to $111,000 per year (up from $108,000 in 2025) directly from an IRA to a charity of your choice via Qualified Charitable Distributions (QCDs). Plus, your heirs can inherit Roth accounts tax-free or stretch traditional IRAs over ten years.

Set yourself up for a great 2026

Milan offers these final words of advice to set yourself up for the best year yet in 2026. Review strategies that can provide additional tax benefits like Roth conversions and tax-loss harvesting. Also, review whether it makes sense to itemize your deductions again now because with the larger SALT cap, which was increased to $40,000 annually through 2028, itemizing may now be beneficial, especially for those living in high tax areas.”

And, so nothing gets left on the table, set calendar reminders: April 15 (IRA deadline), October 15 (extension, plus final 2025 Solo 401(k) contribution), December 31 (final 2026 contributions), and if you’re turning 62 to 70 in 2026, consider when to apply for your Social Security.

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