401(k) and IRA Contribution Limits for 2026

The IRS adjusts retirement limits annually based on inflation via IRS Notice 2025-67. Every major category increased for 2026 — the broadest set of bumps in three years.

Account	2025 Limit	2026 Limit	Change
401(k) deferral	$23,500	$24,500	+$1,000
401(k) catch-up (50+)	$7,500	$8,000	+$500
IRA contribution	$7,000	$7,500	+$500
IRA catch-up (50+)	$1,000	$1,100	+$100
SEP IRA maximum	$70,000	$72,000	+$2,000
SIMPLE IRA deferral	$16,500	$17,000	+$500
SIMPLE catch-up (50+)	$3,500	$4,000	+$500
Total DC limit (incl. employer)	$70,000	$72,000	+$2,000
<a href="/posts/traditional-vs-roth-ira-pick-the-right-one-in-2026">Roth IRA</a> phase-out (single)	$150K–$165K	$153K–$168K	+$3K
Roth IRA phase-out (MFJ)	$236K–$246K	$242K–$252K	+$6K

The IRA catch-up increase to $1,100 is notable — SECURE 2.0 added annual cost-of-living adjustments to IRA catch-ups for the first time. Previously, this figure was a static $1,000 for over two decades.

This comparison covers the four main retirement account types. Use it to figure out which combination gives you the most tax-advantaged space.

Feature	401(k)/403(b)	Traditional IRA	Roth IRA	SEP IRA	SIMPLE IRA
2026 limit (under 50)	$24,500	$7,500	$7,500	$72,000 or 25% of comp	$17,000
Catch-up (50+)	+$8,000	+$1,100	+$1,100	None	+$4,000
Super catch-up (60–63)	+$11,250	N/A	N/A	N/A	+$5,250
Max with catch-up (50+)	$32,500	$8,600	$8,600	$72,000	$21,000
Max with super catch-up	$35,750	N/A	N/A	N/A	$22,250
Tax on contributions	Pre-tax or Roth	Deductible (if eligible)	After-tax	Pre-tax	Pre-tax
Tax on withdrawals	Taxed as income	Taxed as income	Tax-free	Taxed as income	Taxed as income
Income limit?	No	Deduction phases out	Yes — see below	No	No
Employer match?	Yes	No	No	Employer-only contributions	Required match or 2%
Who can use it?	W-2 employees	Anyone with earned income	Income-eligible earners	Self-employed / small biz	Small biz (100 or fewer)

Roth IRAs have income gates that other accounts don't. For 2026:

Single filers:

• Full contribution allowed: MAGI under $153,000
• Reduced contribution: $153,000–$168,000
• No direct contribution: above $168,000

Married filing jointly:

• Full contribution allowed: MAGI under $242,000
• Reduced contribution: $242,000–$252,000
• No direct contribution: above $252,000

Traditional IRA deduction phase-outs (if covered by a workplace plan):

• Single: $81,000–$91,000
• MFJ (contributing spouse covered): $129,000–$149,000
• MFJ (non-covered spouse married to covered): $242,000–$252,000

If your income exceeds the Roth limits, the backdoor Roth conversion remains available: contribute $7,500 to a non-deductible Traditional IRA, then convert to Roth. The IRS hasn't shut this door. Watch the pro-rata rule — if you hold pre-tax IRA balances, a portion of your conversion will be taxable. Rolling pre-tax IRA money into a 401(k) before converting solves this.

Raw limits don't tell you what matters — how much of your income you can actually redirect into tax-advantaged accounts. Here are three scenarios for workers under 50.

$75,000 salary — single filer:

• 401(k): $24,500 (32.7% of gross)
• Roth IRA: $7,500 (full eligibility)
• HSA (if eligible): $4,300
• Total sheltered: $36,300 (48.4% of gross income)
• Estimated federal tax savings at 22% bracket: ~$6,336 on pre-tax contributions

$150,000 salary — single filer:

• 401(k): $24,500 (16.3% of gross)
• Roth IRA: $7,500 (full eligibility — MAGI under $153K after 401(k) reduces AGI)
• HSA: $4,300
• Total sheltered: $36,300 (24.2% of gross income)
• At the 24% bracket margin, pre-tax 401(k) saves ~$5,880 in federal taxes alone

$250,000 salary — married filing jointly:

• Two 401(k)s: $49,000 ($24,500 each)
• Roth IRAs: $15,000 ($7,500 each) — check MAGI after 401(k) reductions; phase-out starts at $242K
• HSA (family): $8,750
• Total sheltered: up to $72,750 (29.1% of gross income)
• At the 32% marginal bracket, pre-tax deferrals save ~$15,680 in federal taxes

These calculations exclude employer matches. A typical 50% match on the first 6% of salary adds $2,250 at $75K income, $4,500 at $150K, and $7,500 per spouse at $250K — all free money that compounds alongside your own contributions.

SECURE 2.0 created an enhanced catch-up window for workers aged 60, 61, 62, and 63. Instead of the standard $8,000 catch-up, these workers can defer an additional $11,250 in 401(k) plans — bringing their total employee deferral to $35,750 for 2026.

That's $3,250 more per year than a worker aged 50–59 can contribute. Over the four-year window from 60 to 63, that's an extra $13,000 in tax-advantaged space (assuming the differential remains stable).

For SIMPLE IRAs, the super catch-up is $5,250 (vs. $4,000 for the standard 50+ catch-up), for a total of $22,250.

One catch: not every plan has adopted this provision yet. Check with your HR or plan administrator. Larger employers have generally updated their plans; smaller companies using off-the-shelf 401(k) platforms may lag. If your plan hasn't adopted the super catch-up, push for it — the IRS has given plans until the end of the 2026 plan year to implement the provision retroactively.

At 64, you drop back to the standard $8,000 catch-up. The window is narrow — four years, then it's gone.

The limits are per-account-type, not per-person. Stack them.

A worker under 50 with a 401(k), IRA eligibility, and an HSA-qualifying health plan can shelter $36,300 in 2026. A worker over 50 pushes that to $42,400 ($32,500 + $8,600 + $1,300 HSA catch-up).

Prioritize in this order:

1. 401(k) up to the employer match. A 50% match on 6% of a $100K salary is $3,000/year — a guaranteed 50% return before the market opens.

2. Max the HSA if you have a high-deductible health plan. The triple tax advantage — deductible going in, tax-free growth, tax-free withdrawals for medical expenses — makes this the single most tax-efficient account. You can invest HSA funds and let them compound for decades.

3. Max the Roth IRA (or backdoor Roth). Tax-free growth, no RMDs, and the ability to withdraw contributions penalty-free make this the most flexible account for early retirees.

4. Max the 401(k) to $24,500. After the match, HSA, and Roth, fill the rest of your 401(k) to cut taxable income.

5. Taxable brokerage for anything beyond. No limits, no restrictions, but you'll owe capital gains taxes. Use tax-loss harvesting to manage the drag.

For self-employed workers, a SEP IRA's $72,000 ceiling often beats all other options combined — but you sacrifice Roth deferrals. A Solo 401(k) with Roth elective deferrals can be more powerful below $200K in self-employment income.