By SR Staff
Every fall, the IRS quietly updates how much you're allowed to save in a tax-advantaged retirement account, and every year, most people miss it. For 2026, the update is worth paying attention to: 401(k) limits are climbing to $24,500, IRA limits are rising to $7,500, and a new rule is changing how high earners handle catch-up contributions. If you're 50 or older and still working, these numbers directly affect how much you can shelter from taxes this year.
Here's a complete, no-jargon breakdown of the 2026 limits, who they apply to, and what's genuinely new. None of this requires an accountant to understand, but it does require a few minutes of your attention, since payroll systems and IRA custodians won't automatically bump up your contribution amount for you.
401(k) Contribution Limits for 2026
The employee contribution limit for 401(k), 403(b), and most 457 plans rises to $24,500 in 2026, up from $23,500 in 2025. This is the amount you personally can defer from your paycheck; it doesn't include any employer match, which sits on top of this limit under a separate combined cap.
If your employer offers a Roth 401(k) option, the same $24,500 limit applies, whether you split contributions between pretax and Roth or put it all in one bucket. The choice comes down to whether you'd rather get the tax break now or in retirement, a decision that ties closely into the broader Roth vs. traditional tradeoff that applies across account types.
IRA Contribution Limits for 2026
The IRA contribution limit, covering both traditional and Roth IRAs combined, increases to $7,500 in 2026, up from $7,000 in 2025. That cap is shared across all your IRAs; you can't contribute $7,500 to a traditional IRA and another $7,500 to a Roth in the same year.
Roth IRA eligibility still depends on income. For 2026, the phase-out range is:
- Single or head of household: full contribution under $153,000 modified adjusted gross income (MAGI); phases out completely at $168,000
- Married filing jointly: full contribution under $242,000 MAGI; phases out completely at $252,000
- Married filing separately: phase-out range remains a narrow $0 to $10,000, unchanged from prior years
If your income is too high for a direct Roth contribution, a backdoor Roth strategy may still be available. And if you're deciding whether to convert existing traditional balances rather than just contributing new money, our guide on Roth conversion strategy walks through the tax tradeoffs in more depth.
Catch-Up Contributions After 50
Once you turn 50, the IRS lets you contribute more than younger savers, on the theory that you're closer to retirement and may need to make up lost ground. For 2026:
- 401(k) catch-up (age 50+): an extra $8,000, bringing the total 401(k) limit to $32,500
- IRA catch-up (age 50+): an extra $1,100, bringing the total IRA limit to $8,600
There's also a "super" catch-up provision, created under SECURE 2.0, specifically for savers turning 60, 61, 62, or 63 during the calendar year. For 2026, that higher catch-up amount is $11,250 for 401(k)-type plans instead of the standard $8,000. A 62-year-old, for example, could contribute up to $35,750 to a 401(k) in 2026: the $24,500 base limit plus the $11,250 super catch-up. The moment you turn 64, you drop back to the standard $8,000 catch-up amount.
The New Rule for High-Earning Catch-Up Contributors
This is the change most likely to catch people off guard. Starting January 1, 2026, anyone who earned more than $150,000 in Social Security wages from their employer in the prior year must make their catch-up contributions as Roth, meaning after-tax dollars, rather than pretax. This applies specifically to the catch-up portion of 401(k)-type contributions, not the base $24,500 limit.
In practice, this means a 55-year-old high earner making a full $32,500 contribution will have the first $24,500 treated normally under their plan's tax structure, while the $8,000 catch-up piece is taxed as income now and grows tax-free going forward, similar to a Roth conversion. Some plans that don't yet offer a Roth option may need to add one, or may temporarily restrict catch-up contributions for affected employees until they do. It's worth confirming with your plan administrator how your specific 401(k) is handling this transition.
Quick Reference: 2026 Limits at a Glance
- 401(k) employee contribution: $24,500
- 401(k) catch-up (50+): $8,000 (total $32,500)
- 401(k) super catch-up (60-63): $11,250 (total $35,750)
- IRA contribution: $7,500
- IRA catch-up (50+): $1,100 (total $8,600)
- Roth IRA phase-out, single: $153,000-$168,000 MAGI
- Roth IRA phase-out, married filing jointly: $242,000-$252,000 MAGI
What This Means for Your Savings Plan
Higher limits are only useful if you actually adjust your contributions to match them. If you're on autopilot with a fixed dollar amount or an old percentage election, take a few minutes to update it, especially if you're eligible for the new super catch-up and haven't been using it. If you left a 401(k) with a former employer and aren't sure how the new limits apply to that account or a rollover IRA, it's worth revisiting what to do with an old 401(k) before you decide where new contributions should go.
These numbers reset every year based on inflation, so treat this as a habit, not a one-time check. If you're behind on savings, the increases in the catch-up limits are one of the few places where the tax code is explicitly designed to help you close the gap in your final working years, so it's worth using them fully if your budget allows. Mark your calendar for next November, when the IRS typically announces the following year's limits, and use it as your annual cue to revisit your retirement savings strategy end to end.
Written by: Seeking Retirement