There is more good news for retirement accounts this year. The IRS has released the updated contribution limits for 2026, and several of the adjustments will allow investors to save even more. As you can see below, these new limits continue the trend of expanding opportunities for retirement savers.

Last year, we highlighted the new SECURE 2.0 rule introducing a higher catch-up contribution for employees aged 60, 61, 62 and 63. For 2026, that enhanced “super” catch-up window remains in place, giving late-career savers another year to take advantage of the increased limit.

How do these changes impact your savings in the upcoming year? Are there any changes you should be making? Schedule a time to meet one-on-one with our team. We look forward to working with you in 2026!

---

---

Related Articles

How many retirement accounts do you have?

The typical baby boomer will have an average of 13 jobs over their working career, according to the Bureau of Labor Statistics. While job moves are practically unavoidable, there are both internal and external challenges to navigate. A common mistake that many investors make is abandoning their old company’s retirement plan with the hopes of figuring it out later. If this is you, you’re not alone! According to USA Today, Americans have more than $1.65 trillion worth of lost or forgotten 401(k) accounts.

Consolidate them into one account

Working with a trusted partner like Human Investing to consolidate your old 401k’s (or 403b) into a single IRA is the best choice. This article outlines the three key benefits of rolling over your old employer retirement plans into an IRA. Consolidating accounts can help you track your hard-earned dollars and simplify your financial household. One account. One Statement. One password. One clear Retirement goal.

Take advantage of the universe of investment options with an IRA

The investment options in a 401k can be limited. According to Vanguard, the average 401k plan has 27.6 investment options for employees to choose from. The graphic below demonstrates how your investment plan may get out of hand quickly as your list of ex-employers grows. Consolidating your 401k into an IRA can give you access to a greater universe of investment options tailored to your needs.

Build a retirement income plan

Saving money in a retirement account is not a means to an end. There is a purpose to it, and for most the goal is retirement. You put money into a retirement account so that you may withdraw it someday when you are no longer receiving a paycheck. Our Human Investing advisors are specialists when it comes to building a retirement income plan.

 When converting hard-earned savings into retirement income, an IRA is superior to a 401k. An IRA affords a retiree the ability to do two crucial things:

1) Increase the tax-efficiency of their withdrawals; and

2) Strategize how they will withdraw money to not violate the first rule of investing: buy low, sell high.

Which account type is right for you as you plan for retirement? For most, an IRA makes sense. An IRA can provide consolidation, more investment options, and efficiencies in retirement.

Start your rollover

Deciphering what to do with your old retirement account can be intimidating and we want to be here to help. If you worked for a publicly traded company and owned shares in your 401k, there are other rollover rules that apply. If you have more questions or would like to discuss your retirement plan with an advisor, schedule an appointment below.

Sources:

[1] U.S. Bureau of Labor Statistics. "Number of Jobs, Labor Market Experience, and Earnings Growth: Results From a National Longitudinal Survey." Accessed August, 2025.

[2] USA Today, July 30, 2025

[3] The Vanguard Group, How America Saves Report - 2025.

---

Disclosure: This material is for informational and educational purposes only and is not intended as personalized tax, legal, or investment advice. You should consult your own tax, legal, and financial professionals before making any decisions based on the information provided. Tax laws and regulations are subject to change, and their application can vary based on your individual circumstances. While the strategies discussed may be appropriate for some individuals, there is no guarantee that any specific tax outcome or investment result will be achieved. Any examples, scenarios, or case studies are hypothetical and for illustrative purposes only. They do not represent actual client situations and should not be relied upon to predict or project results. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. All investments and tax strategies carry certain risks and may not be suitable for all investors. Advisory services offered through Human Investing, LLC, an SEC registered investment adviser.

---

Related Articles

Full transparency: I am a Roth enthusiast.  

If you are reading this article, it’s likely that we have already spent some time reviewing the benefits of Roth together and you have sensed some of my fervor. While the excitement is real, the concept of saving dollars in tax-sheltered accounts like an IRA, 401(k), HSA, or 529 account is complicated to grasp. With that said, I am offering some written advice about Roth accounts for my fellow visual learners.

Before you read on, here is an outline of the two different ways to save Roth.

Roth IRA

• Contribution limit: $6,000 per year ($7,000 if you are ages 50 and older)

• Eligibility: Single tax filer with 2022 income less than $144,000 or Married filed jointly with 2021 household income less than $214,000

Roth 401k

• Contribution limit: $20,500 per year ($27,000 if you are ages 50 and older)

• Eligibility: All employees can contribute up to $20,500 regardless of your income and salary.

• Employer match: Employer contributions are always pre-tax. If you contribute Roth inside your 401(k) plan you will still receive your pre-tax employer contributions. This is important! People are commonly surprised to learn that 401(k) accounts have Roth inside them.

401(k) Account – two savings types under the same umbrella

In summation, if your annual income is less than $125,000 (single filer) or $198,000 (married filed jointly) then you could save up to $26,500 in Roth accounts for the year 2022. The math is here:

Hierarchy of Roth

What should you do if you have access to save Roth inside your 401(k) account but are also eligible to make Roth IRA contributions? Which account should you actively contribute to this year?

First, we recommend that you contribute enough to your Roth 401(k) account to receive your employer match (if applicable). For example, if your employer match is designed so that if you save 5% your employer will contribute 4%, then we recommend you meet the 5% savings rate to take advantage of the free money.

If you can still save additional dollars, use the Venn Diagram and these two examples to help formulate your decision.

Meet Michaela, age 29, single tax filer

Michaela, like many 29 year-olds, just started a job at her fourth employer in 8 years. Let’s imagine that she just enrolled in her current 401(k) plan which has a save 4%, get 4% employer match structure. She has also noticed her total savings and checking account balances have grown over the past year. As a result, she wants to set aside additional dollars to invest for the future, but also has some concerns about possibly needing access to the dollars in the coming years. Michaela could easily increase her 401(k) contributions to above 4%, but she decides to open a Roth IRA instead because of the flexible distributions. For Michaela, the hierarchy of her Roth savings is as follows:

Meet Martin, age 40, married, joint tax filer

Martin is busy juggling their full-time job, building a deck in their backyard, and spending time with their energetic family. They are currently saving 8% Roth into their 401(k) plan which equates to $7,500 annually. Martin is a great candidate for increasing their Roth 401(k) contributions since they still have $12,000 of potential savings into this account to reach the $20,500 maximum this year. Given their busy lifestyle, Martin will benefit by leaning into the automation of a 401(k) account.

Increasing your contribution rate is easier than opening a Roth IRA, making contributions throughout the year, and creating an investment strategy for that account. For Martin, the hierarchy of their Roth savings is as follows:

Since Michaela and Martin’s examples don’t speak to all situations, here is a Venn Diagram with additional considerations for you:

---

Related Articles