IRS Raises 401(k) Limits for 2026 as Retirement Savers Get a Boost

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A Timely Lift for U.S. Savers

The move arrives as Americans confront stubborn inflation, higher living costs, and growing concerns about retirement readiness. Financial experts say the expanded limits will give savers more breathing room to invest tax-deferred income and weather economic uncertainty.

While the IRS’ annual adjustments often fly under the radar, this increase—paired with rising wages and evolving workplace retirement benefits—could make a tangible difference for those aiming to retire comfortably in the years ahead.

The new limits take effect in 2026, marking another step by the federal agency to keep retirement savings aligned with the realities of a shifting economic landscape.

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