🕷️ Crawler Inspector

[Skip to main content](https://www.principal.com/individuals/learn/how-max-out-your-401k-and-ira-retirement-contributions#main-content) - [For individuals](https://www.principal.com/individuals) - [For businesses](https://www.principal.com/businesses) - [For financial professionals](https://www.principal.com/finpro) - About us - Service and support - Careers - Asset management Retirement plans Get the most out of your employer-sponsored retirement plans, including a 401(k). Annuities Use a guaranteed income stream to help diversify your retirement options. Individual retirement accounts (IRAs) Set up (and save in) a tax-advantaged account that’s just right for you. Enroll today, save for tomorrow. Sign up for your workplace retirement plan. Enroll now Individual disability Disability income insurance Disability income retirement security Employee benefits Accident insurance Critical illness insurance Dental insurance Group term life insurance Hospital indemnity insurance Long-term disability insurance Paid family and medical leave & state disability insurance Short-term disability insurance Vision insurance Additional protection Dental discount plan, an alternative to dental insurance Estate planning & irrevocable life insurance trusts Looking for a dentist in your network? Search our directory or browse a list of providers in your area. Find a dentist Tools Calculate your income protection needs Retirement wellness planner Find a service provider Find a dentist Find a vision provider Find a financial professional Help Enroll in your 401(k) Find a form Help center View a claim Create an account Set up your online access and update your information. Get started Benefits and insurance Find out how to protect what matters most and support your well-being. Estate planning Learn how to build a foundation to help your loved ones and leave a legacy. Financial planning Discover tools, tips, and insights to help reach your short- and long-term goals. Investing Create a plan and boost your knowledge so you know how to make financial progress. Retirement Strategies to save for (and enjoy) your retirement. View all articles Featured Article Prep steps you can take now to be ready for tax time Organize now so you have what you need and can finish this important financial task by April 15. How can we help you? Close Log in For individuals Our Sites For individuals (current site) For businesses For financial professionals Quick Links About us Service and support Careers Asset management Retirement, Investments, & Insurance for Individuals Learn How (and when) to increase your 401(k) and IRA contributions # How (and when) to increase your 401(k) and IRA contributions Just a 1% increase in your 401(k) contribution can make a big difference. Learn how making the most of your retirement plan now could help ensure your golden years are even more golden.  4 min read \| November 24, 2025 When you contribute to a 401(k), 403(b), or IRA, you may be on a path to help secure your financial future. But could you save more? Making the most of your organization's retirement plan and your own savings goals today may mean it's easier to reach the financial goals you have for your post-work years. Here are some insights to help. ## “How much should I save for retirement?” The answer is, there's a different answer for every person. It depends on a combination of what you want to do and what you're able to do, on how you're able to balance retirement savings with other financial goals. The best answer is, save as much as you can for as long as you can. “However, a good rule of thumb is to try to save 10–15% of your income toward retirement,” says Stanley Poorman, a financial professional with Principal®, “but that also depends on when you get started. That answer may work if you start in your 20s. If you're starting in your 50s, though, you may need to save more to retire comfortably. There’s no one-size-fits-all answer.” Another factor is whether you have a matching contribution from your employer, and if so, what percentage the company contributes. Poorman suggests deferring enough of your pay to get that match. (It’s often referred to as free money.) ## How often can you change your 401(k) contribution? How often you can adjust your 401(k) or 403(b) contribution is generally determined by your employer and your retirement plan—it may be once a year or as often as you’d like. (Check with your HR department or your retirement plan provider if you're not sure.) It may not seem like small increases make a difference but they do. Think about a raise you might get—say it's several percentage points. If you take 1% of that raise and save it in your 401(k) or IRA, it may make a big difference down the road. Consider the example below for someone with a \$35,000 annual income:1 | **Additional contribution** | Reduction in bi-weekly take-home pay | Estimated additional monthly retirement income | Total employee contributions over 30 years | |---|---|---|---| | 5% | \$50 | \$933 | \$90,340 | | 3% | \$30 | \$560 | \$54,204 | | 2% | \$20 | \$373 | \$36,136 | | 1% | \$10 | \$187 | \$18,068 | # What are 2026 retirement contribution limits and income ranges? Typically the IRS increases the amount you can save each year in your retirement accounts, and 2026 is no different. In 2026, you may save up to \$24,500 in your 401(k) plans. The IRA and Roth IRA contribution limits increased, too, to \$7,500.2 Find the [2026 retirement contribution limits and income restrictions](https://www.principal.com/individuals/learn/what-are-2026-401k-and-ira-max-contribution-limits) that affect you. # How to use catch-up contributions for your 401(k) and IRA after age 50 Once you reach age 50, you're able to save even more through what are known as catch-up contributions. At that age, you may contribute an additional \$8,000 a year to a 401(k). If you're age 60-63, the total is \$11,250, also for 401(k)s. For IRAs and Roth IRAs, the catch-up contribution for people age 50 and older is \$1,100. ## What's next? If you have a Principal retirement account from your employer, [log in to principal.com](https://accounts.principal.com/) to increase your contribution and learn about rollover options. Don’t have an employer-sponsored retirement account? We can help you [set up your own retirement savings with an IRA or Roth IRA account](https://www.principal.com/individuals/invest-retire/individual-retirement-account). Questions about your IRA—how to add money or make changes? [Visit our Help with IRAs page](https://www.principal.com/help/help-individuals/help-iras). Retirement Financial planning Related content  4 min read Investing What’s investment risk and risk tolerance (and how to navigate them both) Risk accompanies all sorts of activities, including investing. What types of risks may impact your retirement and savings accounts?  5 min read Retirement How do I roll over a retirement account? You may be leaving a job and need to do something with your retirement savings. Or you may have old retirement accounts to consolidate. Whatever the reason, completing a rollover can help.  4 min read Retirement Beyond Full Funding: The Next Evolution of LDI Pension plans are reaching their strongest funded levels in decades, creating a rare opportunity for sponsors to lock in gains by more precisely aligning assets with liabilities. By incorporating strategies such as key rate duration, STRIPS, and interest rate swaps, plans may better protect funded status from future market volatility. *** 1 This example is for illustrative purposes only. It assumes \$35,000 in annual income, 3.5% annual wage growth, 30 years to retirement, 7% annual rate of return and a 25% tax bracket. Estimated monthly retirement income calculations assume a 4.5% annual withdrawal in retirement. The assumed rate of return is hypothetical and does not guarantee any future returns nor represent the return of any particular investment option. Reduced take-home pay is accurate for the initial year and would change based on participant’s annual pay. Estimated savings amounts shown do not reflect the impact of taxes on pre-tax distributions. Individual taxpayer circumstances may vary. 2 Contributions are limited to the lesser of the annual plan or the IRS limit, as indexed annually. 3 Some plans may not allow catch-up contributions to the plan. This document is intended to be educational in nature and is not intended to be taken as a recommendation. Investing involves risk, including possible loss of principal. Asset allocation and diversification does not ensure a profit or protect against a loss. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed income investments are subject to interest rate risk; as interest rates rise their value will decline. Investment and insurance products are: - Not insured by the Federal Deposit Insurance Corporation (FDIC) or any federal government agency. - Not a deposit, obligation of, or guaranteed by any bank or banking affiliate. - May lose value, including possible loss of the principal amount invested. Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., [member SIPC](https://www.sipc.org/) and/or independent broker-dealers. Investment advisory products offered through Principal Advised Services, LLC. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392. About us Investor relations News room Sustainability Insights Corporate careers Financial professional opportunities Internships Recent graduates For dental providers Principal Asset Management Principal Foundation Sitemap Cookie settings 800-986-3343 Help topics Service and support

1 This example is for illustrative purposes only. It assumes \$35,000 in annual income, 3.5% annual wage growth, 30 years to retirement, 7% annual rate of return and a 25% tax bracket. Estimated monthly retirement income calculations assume a 4.5% annual withdrawal in retirement. The assumed rate of return is hypothetical and does not guarantee any future returns nor represent the return of any particular investment option. Reduced take-home pay is accurate for the initial year and would change based on participant’s annual pay. Estimated savings amounts shown do not reflect the impact of taxes on pre-tax distributions. Individual taxpayer circumstances may vary. 2 Contributions are limited to the lesser of the annual plan or the IRS limit, as indexed annually. 3 Some plans may not allow catch-up contributions to the plan. This document is intended to be educational in nature and is not intended to be taken as a recommendation. Investing involves risk, including possible loss of principal. Asset allocation and diversification does not ensure a profit or protect against a loss. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed income investments are subject to interest rate risk; as interest rates rise their value will decline. Investment and insurance products are: - Not insured by the Federal Deposit Insurance Corporation (FDIC) or any federal government agency. - Not a deposit, obligation of, or guaranteed by any bank or banking affiliate. - May lose value, including possible loss of the principal amount invested. Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., [member SIPC](https://www.sipc.org/) and/or independent broker-dealers. Investment advisory products offered through Principal Advised Services, LLC. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392.