What do the 2026 IRS contribution limits mean for your retirement account?

What are the 401(k) and employer-sponsored plan contribution limits?

The IRS limits the dollar amount of contributions and benefits allowed for qualified and other tax-favored retirement accounts, which are adjusted annually for inflation according to Section 415 of the Internal Revenue Code. This means that there are limits to how much you and/or your employer can put into an employer-sponsored retirement plan and other benefit limitations.

What do you need to know about catch-up contributions for 2026?

If you’re turning 50 or older, you can make catch-up contributions to save even more as you get closer to retirement. Understanding catch-up contributions and being aware of what’s changing in 2026 can help you get closer to your goals.

Catch-up contribution rules

After age 50, catch-up contributions let you contribute additional money to your retirement savings beyond the standard limits. And starting in 2025, thanks to the SECURE 2.0 Act, if you are age 60 to 63, you can also make “super catch-up contributions” to save even more. 

Before 2026, catch-up contributions were usually made with pretax dollars, which reduced your taxable income. Your employer may also have offered you the option to make Roth contributions, which are made with after-tax dollars.  

SECURE 2.0 Act retirement updates 

Starting January 1, 2026, a new provision of the SECURE 2.0 Act will affect how certain employees make catch-up contributions. 

Catch-up contributions must now be made as Roth (after-tax) contributions if you:

• Are 50 years or older
• Are enrolled in a 401(k), 403(b), or 457(b) governmental plan
• Have FICA wages that exceed $150,000 (adjusted for the cost of living) in the previous calendar year from the employer sponsoring the plan

Are you exempt from this rule?

• If your FICA wages are below the Roth catch-up wage threshold, you can choose to make contributions on either a pretax or an after-tax Roth basis.
• If you don't receive FICA wages, such as if you're a partner or sole proprietor with only self-employed income, you're not subject to this new Roth catch-up contribution rule.

How much can you save in traditional and Roth IRAs?

The IRS also limits what you can contribute each year to traditional and Roth IRAs: 

• The maximum amount you can contribute to an IRA (traditional, Roth, or a combination of the two) increases from $7,000 to $7,500 (for those eligible to contribute).
• The additional catch-up contribution limit, if you’re age 50 or over, increases from $1,000 to $1,100.

Income levels limit traditional IRA contributions 

If you’re eligible for an employer-sponsored retirement plan, income-based phaseout ranges and income tax filing status control how much you can deduct from your income for a traditional IRA contribution. The phaseout ranges for determining the deductibility of traditional IRA contributions don’t apply if neither you nor your spouse is covered by a qualified plan during the year.  

Income levels and Roth IRA contributions

Your ability to contribute to a Roth IRA and the amount you can contribute depends on your taxpayer filing status and income level.

Contribution limits and your retirement planning 

Great news for retirement savers! The IRS has increased most of the contribution limits for 401(k)s and most employer-sponsored plans for 2026. If you’re not already maxing out your contributions, contributing to the limit now may be a great time to increase what you’re saving and give your retirement account a boost. And if you’re saving in an IRA, whether traditional or Roth, the income phase-out ranges are going up, too. This means you may be able to deduct more of your traditional IRA contribution or, if your income was previously too high, you may now be eligible to make Roth IRA contributions or larger Roth IRA contributions within the overall IRA contribution limit in 2026. While the overall IRA contribution limit still applies, expanded phase out ranges may give you more flexibility in how you save. Be sure to review the new 2026 contribution limits so you can take full advantage of these changes.

Visit the IRS website for more details.

Please note that the annual contribution rates are based on the IRS 2026 retirement plan limits and can be subject to change.

1 Applies for determining highly compensated employees for the 2027 calendar year. 2 Applies for determining highly compensated employees for the 2026 calendar year. 3 Will apply for determining participants subject to the Roth catch-up contribution mandate (Roth-CUPs) for the 2027 calendar plan year. 4 Applies for determining Roth-CUPs for the 2026 calendar plan year. 5 Applies to most, but not all SIMPLE plans.