A company-sponsored retirement plan can include 401(k)s, 403(b)s, profit-sharing, and/or cash-balance plans. A 457(b) plan is similar to 401(k) plans and is offered to employees of federal, state, and local governments and some non-profit employers. You may have one or more of these. All of these plans make it easier for you to save money for retirement since your company opens up the account for you, and J.P. Morgan's user-friendly portal walks you through the rest.
Each year, the IRS limits the amount you and your employer can contribute to your plan. In 2026, the saver contribution limit for traditional (pre-tax) and Roth contributions is $24,500. Any saver aged 50 and over can make an additional catch-up contribution of $8,000. In addition, as of 2025, individuals aged 60 to 63 as of the last day of the Plan Year can make higher catch-up contributions to their retirement plans, with limits increasing to $11,250.
Also, your employer may contribute in addition to the saver limits.