The 2026 Retirement Limits
Last updated: March 2026 to reflect IRS Notice 2025-67 and 2026 contribution limits.Please notify us if any of these links break, or if you have your own suggestions or tips, and we’ll do our best to refresh and update content.
The IRS has released the 2026 retirement contribution limits — and there's good news across the board. Limits increased for 401(k)s, IRAs, Roth IRAs, and HSAs. But 2026 also brings an important new rule under SECURE 2.0 that affects high earners making catch-up contributions. Here's the full picture.
The 2026 Numbers
401(k), 403(b), and most 457(b) plans
Employee elective deferral limit: $24,500 (up from $23,500 in 2025)
Age 50+ catch-up contribution: $8,000 (up from $7,500) — total $32,500
Age 60–63 super catch-up: $11,250 (unchanged) — total $35,750
IRA and Roth IRA
Contribution limit: $7,500 (up from $7,000 in 2025)
Age 50+ catch-up: $1,100 (up from $1,000) — total $8,600
Roth IRA income phase-out ranges
Single filers: $153,000–$168,000 (up from $150,000–$165,000)
Married filing jointly: $242,000–$252,000 (up from $236,000–$246,000)
Traditional IRA deductibility phase-out (covered by workplace plan)
Single filers: $81,000–$91,000 (up from $79,000–$89,000)
Married filing jointly: $129,000–$149,000 (up from $126,000–$146,000)
Health Savings Account (HSA)
Self-only coverage: $4,400 (up from $4,300)
Family coverage: $8,750 (up from $8,550)
Age 55+ catch-up: $1,000 (unchanged)
Business Owners and the Self-Employed — You Can Save Significantly More
If you own your business or have self-employment income, your contribution limits extend well beyond what W-2 employees can access.
SEP IRA The simpler option for many sole proprietors and small business owners — no employees required, minimal administration. The 2026 limit is the lesser of $72,000 or 25% of compensation (20% for self-employed owners after the self-employment tax deduction). No catch-up contributions are permitted.
SIMPLE IRA and SIMPLE 401(k) Designed for small businesses with employees. Lower contribution limits than a full 401(k) but simpler to administer.
Employee elective deferral: $17,000
Age 50-59 and 64+ catch-up: $4,000 — total $21,000
Age 60-63 catch-up: $5,250 — total $22,250
Solo 401(k) — often the most powerful option For self-employed individuals with no full-time employees other than a spouse. You contribute as both employee and employer, which dramatically increases what you can shelter.
Employee contribution: up to $24,500 (plus applicable catch-up)
Employer contribution: up to 25% of compensation
Combined limit: up to $72,000 (or $80,000 with age 50+ catch-up, $83,250 with age 60-63 catch-up)
A Roth solo 401(k) option may also be available, allowing after-tax contributions that grow tax-free
With the right solo 401(k) plan design, employee Voluntary after-tax contributions and in-plan conversions or in-service distributions out to a Roth IRA allow for the Mega Backdoor Roth strategy
Cash Balance and Defined Benefit plans For higher-earning business owners who want to shelter significantly more than the defined contribution limits allow, a Cash Balance or Defined Benefit pension plan can be layered on top of a 401(k) — in some cases allowing total annual contributions well into six figures depending on age and income. These plans require actuarial administration but can be extraordinarily powerful for business owners in their peak earning years, especially if needing to make up for lost time in retirement planning.
The right structure depends on your business type, income level, number of employees, the age disparity between you as the owner and other employees, and how aggressively you want to reduce current-year taxes and to push that taxable income to a future date. If you're a business owner still using a SEP IRA because it's simple, it's definitely worth modelling what a Solo 401(k), small business 401(k) plan and/or Cash Balance plan could do for your tax picture.
The New 2026 Catch-Up Rule for High Earners
This is the most significant change for 2026 and one that will catch many people off guard.
Starting January 1, 2026, if your Social Security wages with your employer exceeded $150,000 in the prior year, your age 50+ catch-up contributions to your 401(k), 403(b), or governmental 457(b) plan must be made as Roth (after-tax) contributions. Pre-tax catch-up contributions are no longer available for this group.
This was originally a provision of SECURE 2.0 that had been repeatedly delayed. It is now in effect.
What does this mean practically? A few things worth thinking through:
If your plan doesn't offer a Roth option, you may not be able to make catch-up contributions at all once you exceed the threshold. Check with your HR or plan administrator now — before the year progresses further.
If your plan does offer Roth, your catch-up will simply be directed there automatically. The dollars contributed are after-tax, which means no immediate deduction — but growth and qualified withdrawals are tax-free. For high earners with significant pre-tax retirement balances already accumulated, this forced Roth treatment may actually be beneficial over the long run.
The $150,000 threshold is based on Social Security wages (FICA wages in Box 3 of your W-2 from the prior year), not Modified Adjusted Gross Income. For most employees these are the same, but they can differ in some situations — worth confirming with your plan administrator or CPA.
Why It's Not Just About the Numbers
Most people who think about retirement contributions think about them in isolation — max the 401(k), maybe do an IRA if there's money left over. What that misses is the bigger picture: building a diversified tax status across three different types of accounts:
Taxable accounts — investments you've already paid tax on, with capital gains treatment on growth.
Tax-deferred accounts — your traditional 401(k), 403(b), IRA, SEP-IRA, SIMPLE IRA. You get the deduction now, but every dollar withdrawn in retirement is ordinary income. And once Required Minimum Distributions begin, you withdraw on the IRS's schedule whether you need the money or not.
Tax-free accounts — Roth IRA, Roth 401(k), Roth 403(b), HSA (for qualified medical expenses). You contribute after-tax dollars, but growth and qualified withdrawals are completely tax-free. No RMDs on Roth IRAs, Roth 401(k) or Roth 403(b)s.
The right balance across these three buckets depends on your income today, your expected income in retirement, your RMD exposure, your estate goals, and a range of other factors that may change over time. The new mandatory Roth catch-up rule is actually a nudge in the right direction for many high earners who have been over-accumulating in pre-tax accounts — but whether it's beneficial will depend on your specific situation.
Three Things Worth Doing Right Now
1. Update your 401(k) deferral rate. If you contribute a flat dollar amount rather than a percentage, the limit increase from $23,500 to $24,500 will mean a lost opportunity without taking action. Log into your plan and adjust accordingly. If you contribute via percentage, check that your percentage will hit the new limit across your remaining pay periods this year.
2. Check whether your plan offers a Roth option. If you're over 50 and earned more than $150,000 last year, you need to know this before making catch-up contributions. If the plan doesn't offer Roth, get clarity from your HR department now.
3. Make your IRA contribution early. You have until April 15, 2027 to make your 2026 IRA contribution — but all things being equal, earlier is better for compounding if doing a Traditional IRA or Backdoor Roth contribution.
Ready to ensure you're set up for success with your taxes and retirement preparation? Visit Services for more information. From effectively managing taxes, to diversifying your assets across taxable, tax-deferred and tax-free accounts, to protecting your wealth, and maximizing your employee benefits, let’s review your complete picture together.
Take advantage of new higher retirement limits, update your contributions and consider which tax “buckets” to direct your dollars to!
