The IRS has announced higher contribution limits for retirement accounts in 2026, giving savers more room to build their nest eggs. Whether you're just starting your career or approaching retirement, understanding these changes can help you make the most of your tax-advantaged savings opportunities.
Here's what changed and how to take advantage of the new limits.
2026 401(k) and 403(b) Contribution Limits
The employee contribution limit for 401(k), 403(b), and most 457 plans increases to $24,500 in 2026, up from $23,500 in 2025. When combined with employer contributions, the total annual limit rises to $72,000, up from $70,000 last year.
For workers age 50 and older, the standard catch-up contribution increases to $8,000, up from $7,500. This means workers 50 and over can contribute up to $32,500 to their workplace retirement plans.
The Super Catch-Up for Ages 60-63
One of the most significant SECURE 2.0 provisions now in effect allows workers aged 60, 61, 62, and 63 to make enhanced catch-up contributions. For 2026, this "super catch-up" limit is $11,250, allowing these workers to defer up to $35,750 annually.
This provision recognizes that many people in their early 60s are in their peak earning years and may need to accelerate retirement savings. If you fall into this age bracket, check with your plan administrator to ensure your plan has been updated to allow the higher contribution.
IRA Contribution Limits Rise
After holding steady in 2025, IRA contribution limits increased for 2026. You can now contribute $7,500 to a traditional or Roth IRA, up from $7,000. Workers age 50 and older can contribute an additional $1,100 in catch-up contributions, up from $1,000, for a total of $8,600.
Roth IRA Income Phase-Out Ranges
The income limits for Roth IRA contributions also increased:
- Single filers: Phase-out begins at $153,000 and ends at $168,000 (up from $150,000-$165,000)
- Married filing jointly: Phase-out begins at $242,000 and ends at $252,000 (up from $236,000-$246,000)
If your income exceeds these limits, you may still be able to contribute through a backdoor Roth IRA strategy. Consult a tax professional to ensure you follow IRS guidelines.
Mandatory Roth Catch-Up Rule for High Earners
Beginning in 2026, high earners face a new requirement: if your wages exceeded $150,000 in the prior year, all catch-up contributions must be made on a Roth (after-tax) basis. This SECURE 2.0 provision was delayed from its original 2024 effective date but is now in force.
This change affects only catch-up contributions, not your regular deferrals. While you lose the immediate tax deduction on these contributions, the Roth treatment means qualified withdrawals in retirement will be tax-free.
SIMPLE and SEP IRA Updates
Self-employed workers and small business employees also see higher limits:
- SIMPLE IRA: Employee contributions rise to $17,000 (up from $16,500), with a $4,000 catch-up for workers 50 and older
- SEP IRA: The contribution limit increases to $72,000 (up from $70,000)
Practical Steps to Maximize Your Savings
- Review your payroll withholdings early in the year to ensure you're on track to max out contributions
- Check if your plan allows the super catch-up if you're between 60-63
- Consider Roth contributions even if not required, since tax-free growth can benefit long-term retirement planning
- Don't forget employer matches - contribute at least enough to capture the full match before maximizing other accounts
The new limits represent a meaningful increase in tax-advantaged savings potential. Even if you can't max out every account, contributing more puts compound growth to work in your favor.
Sources: IRS, Fidelity, Social Security Administration, ADP