401(K) and Roth IRA Game Plan for 2026

A retirement expert's basic sequence: contribute enough to a traditional 401(k) for the full employer match, then max out a Roth IRA, then add more.
The logic pairs tax-deferred workplace saving with tax-free Roth growth and withdrawals, giving many savers both an employer benefit and future tax flexibility.
Current 401(k) personal contributions cap at $24.5K, or $32.5K for workers 50+. Some employers may also allow extra catch-up contributions for ages 60-63.
Current Roth IRA contributions cap at $7.5K, or $8.6K for savers 50+. Higher earners above $168K single or $252K joint cannot contribute.
Two key reminders: old 401(k) assets may move into a rollover IRA without affecting annual limits, and Roth earnings need a 5-yr waiting period.