If you’re getting a late start or have fallen behind with your retirement savings contributions, there are a number of options to consider.
One way to save for retirement is through a structured, ongoing investment program, such as a salary deferral or automatic investment plan.
By contributing the most money permitted under your retirement plan or individual retirement account (IRA), you increase your long-term investment potential.
If your employer offers a matching contribution, take full advantage of it. You can qualify for matching funds only if you make the required contribution.
Generally speaking, based on your investment time frame and tolerance for volatility, you can put together an investment mix that focuses on growth while providing some measure of stability.
Another factor to keep in mind is how much you’ve already saved. If you don’t think you’ve saved enough, you could consider keeping more of your assets in growth investments. However, remember that pursuing more growth generally means taking on greater risks.
If you’ve maxed out your retirement plan contribution, consider opening an IRA. IRAs offer some of the same tax-deferred benefits as retirement plans. There are two types of IRAs: traditional and Roth IRAs. It’s a good idea to research which one best fits your financial situation and long-term needs.
If you’re married, you and your spouse may open separate IRAs. Both of you can contribute the full amount permitted by law. With a traditional IRA, you may be able to deduct a portion or all of your contributions from your income tax, depending on your income. With a Roth IRA, your eligibility and contribution limits are based on your federal income tax filing status -- individual or joint -- and modified adjusted gross income (MAGI).
There are other tax-advantaged investment vehicles you can use to build up your retirement savings, such as annuities and municipal bonds or municipal bond funds.
Given the many options available, you may want to meet with a financial professional to put together an investment program that is designed to help you meet your investment goals.
Now you can contribute more to your retirement plans than ever before.
401(k), 403(b) and 457 plan limits |
|||
|---|---|---|---|
Year |
Contribution limit |
Catch-up contribution limit |
|
Age 50–59 and 64+ |
Age 60–63 only1 |
||
2026 |
$24,500 |
$8,000 |
$11,250 |
Check with your employer about specefic contribution limits for your plan. If your 401(k) or 403(b) plan accepts Roth contributions, limits apply whether contributions are pretax, Roth after-tax or a combination of both.
Year |
Number of employees in the plan |
Contribution limit (under age 50) |
Catch-up contribution limit |
|
|---|---|---|---|---|
Ages 50-59 and 64+ |
Age 60-63 only1 |
|||
2026 |
< 26 |
$18,100 |
$3,850 |
$5,250 |
> 25 |
$17,000 |
$4,000 |
$5,250 |
|
Check with your employer about specific contribution limits for your plan.
Year |
Contribution limit |
Catch-up contribution limit |
|---|---|---|
2026 |
$7,500 |
$1,100 |
Footnotes/Important information:
1This higher catch-up limit is only applicable to participants who attain ages 60, 61, 62 or 63 in 2026 and replaces the 50+ catch-up contribution limits referenced above.
2Number of employess who earned at least $5,000 in the prior year.
3These plans can qualify for the higher employee contribution limit of $18,100 with additional catch-up contributions of $3,850 by opting to make higher mandatory employer matching contributions of 4% of compensation or nonelective contributions of 3%.
Even the money you take as your minimum distribution can have the opportunity to grow if you don’t use all of it for living expenses.
You can consider investing a portion or all of your yearly distribution in a regular taxable account if you want to keep your money working for you.
Contact your financial professional or tax advisor for help with building a strategy.