One Quarter Left to Make It Count
For most retirement accounts, the contribution deadline is December 31, not April 15. That distinction matters more than many people realize, particularly for 401(k) plans, where contributions are made through payroll deferrals and changes to those elections require time to take effect. September is the last comfortable window to review contribution rates and make adjustments before the year runs out.
With 2026 bringing meaningful increases to contribution limits across retirement and health savings accounts, including a significant new rule for investors in their early 60s, the case for a mid-September review is stronger than usual.
2026 Contribution Limits: What Changed
The base 401(k) elective deferral limit increased to $24,500 in 2026, up $1,000 from 2025. For those aged 50 and older, the standard catch-up contribution limit rose to $8,000 — bringing the total potential contribution to $32,500.¹ For investors who have been contributing at last year’s rates without adjusting, a portion of that increase may still be within reach if payroll elections are updated now.
The IRA contribution limit increased to $7,500 for 2026, with a catch-up of $1,100 for those 50 and older — for a total of $8,600. Unlike 401(k)s, IRA contributions can be made up to the tax filing deadline in April of the following year, giving investors more flexibility. However, contributing earlier allows more time for tax-free growth, and waiting until April can make it easy to overlook entirely.²
HSA contribution limits also increased — to $4,400 for individuals and $8,750 for families in 2026. For investors enrolled in a qualifying high-deductible health plan, the HSA remains one of the most tax-efficient vehicles available: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free — a triple tax advantage available in no other account type.³ Those aged 55 and older can contribute an additional $1,000 catch-up amount, bringing the individual limit to $5,400.
The Super Catch-Up: A Significant Opportunity for Ages 60–63
One of the most consequential provisions of the SECURE 2.0 Act, which took full effect in 2026, is the enhanced catch-up contribution for investors aged 60, 61, 62, or 63. Rather than the standard $8,000 catch-up, these investors are eligible to contribute an additional $11,250 in catch-up contributions to their 401(k) — bringing the total potential 401(k) contribution to $35,750 for the year.⁴
This is not an additional layer on top of the standard catch-up — it replaces it. A 62-year-old investor is eligible for $11,250 in catch-up contributions, not $8,000 plus $11,250. The super catch-up reverts to the standard limit at age 64, making ages 60 through 63 a narrow and meaningful window that warrants deliberate attention.⁵
For investors in this age range who have not maximized their contributions in prior years, this provision represents one of the most direct opportunities available to accelerate retirement savings in the years immediately before retirement — when account balances have the most to gain from additional capital and the horizon to RMDs is relatively short.
A New Roth Catch-Up Requirement for High Earners
Also effective in 2026 under SECURE 2.0: investors aged 50 and older who earned more than $150,000 from their employer in the prior calendar year are now required to make any catch-up contributions on a Roth basis, meaning after-tax dollars rather than pre-tax.⁶ For affected investors, this changes the tax character of catch-up contributions but does not reduce the amount that can be contributed. It does, however, require that the employer’s plan offer a Roth option. Investors whose plans do not yet have a Roth feature may find their catch-up contribution eligibility affected, a detail worth confirming with HR or plan administrators before year-end.
Why September Is the Right Month to Act
For 401(k) participants, contribution increases take effect through payroll, which means there are a finite number of paychecks remaining in 2026 to capture additional deferrals. Updating an election in September allows contributions to spread across the final quarter. Waiting until November or December compresses the adjustment into fewer pay periods, which can require a larger per-paycheck deferral to catch up or result in leaving contribution room unused entirely.
For IRA and HSA contributions, the deadline pressure is less acute, but earlier action means more time invested in the market, and less risk of the contribution being overlooked during the busy year-end period.
Bottom Line: One quarter remains to maximize contributions to tax-advantaged accounts, and the 2026 limits are the highest they have ever been. For investors in their early 60s especially, the super catch-up provision represents a narrow and significant opportunity that closes at age 64. Reviewing current contribution rates now and adjusting before October gives the final quarter of the year room to work. Your Wedbush advisor can help confirm your current pace and identify any gaps worth closing before December 31.
Sources:
- https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
- https://www.fidelity.com/learning-center/smart-money/401k-contribution-limits
- https://www.visionretirement.com/articles/retirement/catch-up-contributions
- https://www.chase.com/personal/investments/learning-and-insights/article/changes-401k-catch-up-contributions-2026
- https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions
- https://www.merceradvisors.com/retirement/2026-retirement-plan-contribution-limits-and-catch-up-rules/
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