
Investing
The 2026 401(k) contribution limit is $24,500 — who should use it
Workers can defer up to $24,500 into a 401(k) in 2026, a $1,000 increase, with an $8,000 catch-up on top for workers 50 and older.
Investing begins where debt and reserves end. Coverage sets an order of operations: high-interest balances first, employer retirement matching next, then broad low-cost funds. Contribution amounts, account types and tax treatment are explained plainly. For households with a modest surplus deciding where the next hundred dollars belongs.
A deliberately plain approach for households: what to clear first, which accounts come next, and why simplicity beats most alternatives at this stage.

Workers can defer up to $24,500 into a 401(k) in 2026, a $1,000 increase, with an $8,000 catch-up on top for workers 50 and older.