401(K) Overview

 

Traditional 401(K) Option

A Traditional 401(k) allows you to contribute pre-tax dollars, helping lower your taxable income today. Your investments grow tax-deferred, meaning you won’t pay taxes on earnings while they remain in the account. However, withdrawals in retirement are taxed as ordinary income based on your tax rate at that time.

 

Roth 401(K) Option

With a Roth 401(k), contributions are made using after-tax dollars—meaning you’ve already paid income taxes on the money before it goes into your account. While contributions are not tax-deductible, the big advantage is that your investments grow tax-free, and qualified withdrawals in retirement are 100% tax-free, including any earnings. This can be a smart choice if you expect to be in a higher tax bracket later in life.

For 2026, the estimated maximum contribution limit is $24,500 (subject to IRS confirmation).

 

401(K) Catch-Up Contributions Option

If you’re age 50 or older, the 401(k) Catch-Up Contribution allows you to contribute additional funds beyond the standard annual limit. This is a powerful way to accelerate your retirement savings and take advantage of potential tax benefits as you approach retirement.

 

To be eligible for catch-up contributions, you must first contribute the full annual limit of $24,500 (estimated for 2026, subject to IRS confirmation) to your Traditional and/or Roth 401(k) accounts.

 

For 2026, the estimated catch-up contribution limit is $8,000 for workers aged 50 to 59. For those aged 60 to 63, the limit increases to $11,500—or 150% of the catch-up limit—whichever amount is greater.

 

Taking full advantage of catch-up contributions can significantly boost your retirement nest egg in your final working years.

 

Pro Tip

Create an online account at https://startright.bokf.com/login.aspx to access your account balance, view statements, check loan information, and more!

 

For More Information, Please Review The Following Documents:

KSOP Enrollment Book

KSOP Summary Plan Description

KSOP Participant Notice Package

BOK Start Right New User Guide