You can save more in your 401(k) and IRA next year. Here’s why.

The IRS on Thursday announced new contribution limits for retirement accounts that will allow people to save more money tax-free in 2026.

The higher caps will further boost the nearly $50 trillion already sitting in workplace 401(k) accounts, IRAs and the like. According to the Census Bureau, the median household has $82,000 in retirement savings. And though the median 401(k) account has $54,900, such savings vehicles have helped hundreds of thousands of Americans build nest eggs worth $1 million or more.