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Every year the IRS adjusts how much you can put away for retirement — here's exactly what changed for 2026.
Each year, the IRS adjusts retirement account contribution limits for inflation. For 2026, most limits increased again — giving you more room to save in your 401(k), IRA, and other tax-advantaged accounts. Here's exactly what changed and what it means for your contribution strategy.
Why this matters: A worker maxing out both employee deferrals and catch-up contributions can now put away $1,500 more in a 401(k) and $500 more in an IRA in 2026 compared to 2025.
| Limit | 2025 | 2026 |
|---|---|---|
| Employee deferral limit | $23,500 | $24,500 |
| Catch-up (age 50+) | $7,500 | $8,000 |
| Total with catch-up (50+) | $31,000 | $32,500 |
| "Super" catch-up (age 60-63) | $11,250 | $11,250 (unchanged) |
| Combined employee + employer limit | $70,000 | $72,000 |
These same deferral limits apply to 401(k), 403(b), and governmental 457(b) plans, as well as the federal Thrift Savings Plan (TSP).
Starting in 2026, if you earned more than $150,000 in prior-year FICA wages, your age-based catch-up contributions must go into a Roth account (after-tax), not a traditional pre-tax account. This applies regardless of your income in the current year — it's based on the prior year's wages. Check with your plan administrator to confirm your plan supports Roth catch-up contributions.
| Limit | 2025 | 2026 |
|---|---|---|
| IRA contribution limit | $7,000 | $7,500 |
| IRA catch-up (age 50+) | $1,000 | $1,100 |
| Roth IRA phase-out (single) | $150,000-$165,000 | $153,000-$168,000 |
| Roth IRA phase-out (married filing jointly) | $236,000-$246,000 | $242,000-$252,000 |
The IRA catch-up increase (to $1,100) is new for 2026 — it's now indexed for inflation under SECURE 2.0, whereas it was previously fixed at $1,000 for years.
If you or your spouse is covered by a workplace retirement plan, your traditional IRA deduction may phase out based on income.
| Filing Status | 2026 Phase-Out Range |
|---|---|
| Single, covered by workplace plan | $81,000-$91,000 |
| Married filing jointly, contributor covered | $129,000-$149,000 |
| Married filing jointly, spouse covered (contributor not) | $242,000-$252,000 |
Higher limits don't automatically mean you should max out further — but if you were already maxing out in 2025, adjusting your per-paycheck contribution amount early in 2026 avoids missing out on the extra room. If you're 60-63, the super catch-up ($11,250) is notably higher than the standard 50+ catch-up ($8,000) — worth checking whether your specific plan supports it, since not all do.
A practical habit: Recalculate your per-paycheck 401(k) contribution amount each January against that year's new limit, rather than leaving it on autopilot from the prior year.
Nadia maxed out her 401(k) in 2025 by contributing $23,500 (under 50, no catch-up), spread evenly across 26 biweekly paychecks at $903.85/paycheck.
| Step | 2025 Amount | 2026 Amount |
|---|---|---|
| Annual deferral limit | $23,500 | $24,500 |
| Per-paycheck amount needed (26 paychecks) | $903.85 | $942.31 |
If Nadia leaves her contribution rate unchanged from 2025, she'll hit the old $23,500 max early and miss out on $1,000 of additional tax-advantaged room for the year — recalculating in January captures the full new limit.
Key Takeaway: For 2026, the 401(k) deferral limit rose to $24,500 and the IRA limit rose to $7,500, with catch-up contributions also increasing. High earners (over $150,000 in prior-year FICA wages) must now make catch-up contributions as Roth going forward. Check your plan's rules on Roth catch-up support and adjust your contribution rate early in the year to make full use of the new limits.
Yes — the $24,500 employee deferral limit for 2026 is a combined limit across pre-tax and Roth 401(k) contributions, not a separate limit for each.
Excess deferrals are treated as taxable income in the year they're made and are taxed again upon distribution unless corrected in time — most plans have safeguards, but switching jobs mid-year across multiple plans is a common way people accidentally over-contribute.
Anyone making age-based catch-up contributions who earned more than $150,000 in FICA wages (Box 3 on your prior year's W-2) — check with your plan administrator on whether Roth catch-up is available before assuming you can make catch-up contributions at all.
Yes — you can still contribute up to the IRA limit, but the contribution won't be tax-deductible above the phase-out range. Many high earners in this situation contribute non-deductible and consider a backdoor Roth conversion.
Inflation-indexing rounds to specific increments, so not every limit adjusts every year — the $11,250 super catch-up simply didn't cross the threshold for an increase this cycle, unlike the standard catch-up amount.
Contact your plan administrator or check your plan's summary documents — not all employer 401(k) plans have implemented Roth catch-up functionality yet, even though the rule applies to affected high earners starting in 2026.
Disclaimer: This article is for general educational purposes only and does not constitute personalized financial, investment, tax, or legal advice. Figures, rates, and rules mentioned may change over time — verify current details with an official source or a qualified professional before making financial decisions.