August 2026 did not bring a broad new 401(k) law or final rule. The month's main development was IRS Notice 2026-48, which previews proposed Saver's Match guidance for 2027 contributions—not a change to 2026 contributions. A 401(k) is an employer-sponsored retirement plan funded through payroll contributions. For current planning, focus on the higher 2026 limits, age-based catch-ups, Roth treatment for some higher earners, and your plan's implementation.
Table of Contents
- What actually changed in August?
- Should you increase your 2026 payroll contribution?
- Which catch-up limit applies to you?
- Why the $72,000 total limit also matters
- What should you watch next?
What actually changed in August?
The August development concerns the Saver's Match, a federal matching contribution for qualifying low- and moderate-income savers. It will replace the usual Saver's Credit for contributions beginning in 2027. The match can equal 50% of the first $2,000 contributed, making the maximum $1,000.
However, IRS Notice 2026-48 says proposed guidance is still forthcoming and payment procedures remain under development. This does not create a match for 2026 contributions. Savers should not count it toward a 2026 contribution target or expect to claim it on a 2026 tax return.
Should you increase your 2026 payroll contribution?
The 2026 employee elective-deferral limit is $24,500, which is $1,000 higher than the 2025 limit. The IRS announcement of the 2026 limits means someone using last year's payroll amount may fall short of the new maximum.
To check your pace: This calculation is most useful for workers trying to reach the annual ceiling. Anyone changing contributions should also consider immediate cash needs rather than treating the maximum as a required target.
- Find your year-to-date employee contributions.
- Subtract that amount from your applicable 2026 limit.
- Divide the remainder by the number of paychecks left in 2026.
- Confirm that your plan and payroll system can process the resulting amount.
Which catch-up limit applies to you?
Workers age 50 or older can generally contribute an additional $8,000 in 2026, producing a $32,500 employee maximum. Workers turning 60, 61, 62, or 63 can instead have an $11,250 catch-up and a $35,750 employee maximum. These catch-ups are available only when the employer's plan permits them. The IRS catch-up guidance also says participants whose prior-year wages from the plan sponsor exceeded $150,000 must make 2026 catch-up contributions as Roth contributions when the plan has Roth features and offers catch-ups.
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Roth contributions use after-tax dollars. The requirement changes when affected contributions are taxed, but it does not reduce the applicable catch-up limit. Final Roth catch-up regulations generally apply to taxable years beginning in 2027. Some governmental and collectively bargained plans have later applicability, so affected workers should read plan and payroll notices carefully.
Why the $72,000 total limit also matters
The employee deferral limit is not the only ceiling. The 2026 total defined-contribution limit is $72,000, excluding catch-up contributions, under IRS Notice 2025-67. That total combines employee and employer contributions.
A large employer contribution or an additional after-tax contribution can therefore use available space under the $72,000 ceiling. For example, an employee contributing the full $24,500 would have $47,500 of remaining non-catch-up space before reaching $72,000. Employer and other covered contributions would count against that remaining amount.
What should you watch next?
Review plan documents and payroll notices for details that federal limits alone cannot answer. In particular, verify: Treat the Saver's Match as a 2027 planning issue. Eligible claimants will use the new Form 8880-A with their 2027 tax return, filed in 2028—not for 2026 contributions.
- Whether the plan permits catch-up contributions.
- Whether it supports Roth contributions.
- Which wage figure payroll uses for the $150,000 Roth catch-up threshold.
- How employer and after-tax contributions affect the $72,000 total.
- Whether contribution changes can still take effect across the remaining 2026 pay periods.
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