5 Big 401(k)s Changes Everyone Over 60 Needs to Know About in 2026

In 2022, President Biden signed the Secure 2.0 Act, a law designed to expand the number of people participating in 401(k) retirement plans. As part of that law, the government has slowly implemented 401(k) changes over the past few years. This year, 2026, many of them have taken effect.

Here are five big 401(k) changes that people over 60 need to know about. With retirement so close, it's important that those in their 60s make the most of their last few years of work and use the time to top up their retirement accounts.

Higher contribution limits for age 60-63

The biggest change for 2026 is that workers aged 60 to 63 can make an even larger contribution to their 401(k)s. Workers in that age range can contribute an extra $11,250 to their 401(k) on top of the new increased contribution limit of $24,500. If workers who are close to retirement can take advantage of this super catch-up contribution for three years, they can significantly increase their 401(k) balance a few years before retiring.

Tax changes for high earners

Another new change is that high earners who make over $150,000 per year must make all catch-up contributions as Roth contributions starting in 2026. That means that employees who previously used catch-up contributions to lower their taxable income won't be able to do that as in previous years. However, the benefit is that making extra contributions as Roth payments means that workers will get the benefit of tax-free withdrawals in retirement (so long as they meet specific criteria).

Perks for part-time employees

For those in their 60s who want to continue working, just not full-time, the Secure 2.0 Act gives part-time workers greater access to 401(k)s. Employees must meet qualifications, such as working at least 500 hours a year for two years in a row, but this is an improvement over previous rules. This is good news for those in their 60s who want to ease into retirement while still getting the benefits of working and contributing to a 401(k) plan.

Automatic enrollment for job hoppers

Part of the Secure 2.0 Act required that all new 401(k) plans include automatic enrollment. So, if you plan to change jobs in your 60s, it's important to be aware that your employer may automatically enroll you in this plan. Some employers may have been slower than others to roll out this change. However, it's important to know that workers can still opt out of a 401(k) plan once they are auto-enrolled. As you get closer to retirement, it's more important than ever to make sure your 401(k) plans are organized and that you know where all your retirement accounts are.

Potential for alternative investments

One change that has not happened yet, but that President Trump proposed, is the possibility of including alternative investments in 401(k) plans. Alternative investments include assets like cryptocurrency. Some government leaders are against this change, while others are for it. No decisions have been made yet, but it's still a good idea for workers in their 60s to be aware of these changes and to pay attention to their investment options as retirement gets closer.

What stays the same

Although there have been many changes within 401(k) plans and potentially more changes on the horizon, it's important to know what will stay the same when it comes to your 401(k) retirement plan. First of all, employers will continue to offer 401(k) plans because 43% of Americans have one. Many employers will still offer benefits, such as matching contributions. Additionally, there are still tax benefits to investing in a 401(k). Sometimes it can be stressful to hear about changes, especially when you're close to retirement, and there's no shame in asking for help if you need it.

How to get help with 401(k) changes

If you're nearing retirement and you are not sure how these 401(k) changes will impact your retirement withdrawals, it's important to get help. Stay up to date by reading all emails your employer sends you about your 401(k) retirement plan. Ask your human resources department for advice or if you have questions about your specific plan. If you need help with a tax strategy or a retirement plan, consult with a financial planner and an accountant who can help keep you accountable and let you know whether or not you're on track for retirement.

Bottom line

There's no doubt that people in their 60s are looking forward to a stress-free retirement. That's why it's important to stay informed about changes in the law affecting your 401(k) accounts. Being aware of these updates can help you avoid surprise tax bills, too. These are some of the most significant changes made to 401(k) plans in many years, so asking a professional if you're on the right track for retirement is a good idea if you need extra support.

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