Americans will be allowed to contribute more of their money to 401(k) and similar retirement saving plans next year.

The IRS said Thursday the maximum contribution that an individual can make in 2026 to a 401(k), 403(b) and most 457 plans will be $24,500. That's up from $23,500 this year.

People aged 50 and over, who have the option to make additional "catch-up" contributions to 401(k) and similar plans, will be able to contribute up to $8,000 next year, up from $7,500 this year. That's means a 401(k) saver who is 50 or older will be able to contribute a maximum of $32,500 to their retirement plan annually, starting in 2026.

Workers between the ages of 60 and 63 will be allowed catch-up retirement plan contributions of up to $11,250 annually, unchanged from this year.

The IRS also rais

See Full Page