2026 401(k) and IRA Contribution Limits
Key Points – 2026 401(k) and IRA Contribution Limits
- Contribution Limits for 401(k)s, 403(b)s, Eligible 457s, and Thrift Savings Plans Increase to $24,500 for 2026
- IRA and Roth IRA Contribution Limits Increase to $7,500 for 2026
- Utilizing Catch-up and Super Catch-up Contribution Limits
- New 2026 Roth IRA Income Limits and Traditional IRA Deduction Limits
- Keeping Up with New SECURE 2.0 Provisions
- 5-Minute Read
401(k), 403(b), Eligible 457s, and Thrift Savings Plan Contribution Limits Increase for 2026
The Internal Revenue Service announced on November 13 that contributions limits for 401(k)s, 403(b)s, governmental 457 plans and Thrift Savings Plans will increase to $24,500 in 2026.1 That is up from $23,500 in 2025. Just like with the 2026 tax brackets, which were released in October, retirement contribution limits are adjusted for inflation each year.
However, it’s worth noting that according to Vanguard’s 2025 How America Saves report, only 14% of the people that were surveyed maxed out their 401(k) in 2024.2 We want to make sure that you’re aware of all the retirement contribution limits for 2026 and strategies to maximize your contributions.
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This article explores the nuances of retirement spending, the different phases of retirement, and how to align your financial resources with your lifestyle goals. We’ll also incorporate the latest statistics to help you benchmark your planning.
Rethinking Retirement Budgeting: It’s Not Just About Today
Many people begin their retirement planning by looking at their current monthly expenses and assuming they’ll need the same amount in retirement. While this might seem logical, it often leads to underestimating future needs.
Catch-up and Super Catch-up Contribution Limits for 2026
If you’re 50 or older, you actually have the opportunity to contribute more than $24,500 to your workplace retirement plan in 2026 via catch-up contributions. In 2026, individuals who are 50 and older can contribute an additional $8,000 to their workplace retirement plan. The catch-up contribution limit for workplace retirement plans in 2025 is $7,500.
But wait! If you turn 60, 61, 62, or 63 in 2026, there’s another opportunity to save even more to your workplace retirement plan. Super catch-up contributions were introduced in 2025 as a provision of the SECURE Act 2.0. Instead of saving an additional $8,000 via a catch-up contribution, individuals 60-63 can save up to an additional $11,250 via a super catch-up contribution. The super catch-up contribution limit is also $11,250 in 2025.
Review Figure 1 below to see the potential power of utilizing catch-up and super catch-up contributions for someone starting at age 50 with $500,000 in their 401(k) and assumes an 8% annual rate of return.
FIGURE 1 – Maxing Out 401(k) Contributions with Catch-Up
All Catch-up Contributions Must Be Made to Roth Accounts Starting in 2026
While SECURE 2.0 became law on December 29, 2022, several of its provisions — such as super catch-up contributions — didn’t go into effect until later.3 In fact, there’s another SECURE 2.0 provision that will go into effect on January 1, 2026, that pertains to catch-up contributions. Starting in 2026, catch-up and super catch-up contributions must be made to Roth accounts if your FICA wages will exceed $150,000 for 2025.4
2026 Traditional and Roth IRA Contribution Limits
IRA and Roth IRA contribution limits will also increase from $7,000 in 2025 to $7,500 in 2026. The catch-up contribution limit for IRAs and Roth IRAs will also increase from $1,000 to $1,100. The new Roth catch-up rule that we just mentioned will not apply to IRAs.
If you plan to contribute to an IRA and a Roth IRA in 2026, remember that the $7,500 limit is the total amount that you can contribute. In other words, you can’t contribute $7,500 to an IRA and $7,500 to a Roth IRA in one calendar year.
2026 Roth IRA Income Limits and Traditional IRA Deduction Limits
The IRS updated the Roth IRA income limits and traditional IRA deduction limits for 2026. Both are based on Modified Gross Adjusted Income.
Roth IRA Income Limits
For single filers and heads of households, your MAGI must be lower than $153,000 to make a full contribution to a Roth IRA or between $153,000 and $168,000 to make a partial contribution in 2026. The phaseout range for 2025 is $150,000-$165,000. If you’re married and filing jointly, the income phaseout is between $242,000-$252,000 for 2026. That’s up from $236,000-$246,000 for 2025.
Traditional IRA Deduction Limits
There are also income phaseout limits to determine whether you’re eligible to make deductible contributions to traditional IRAs. The traditional IRA deduction limits are contingent on whether you and your spouse have workplace retirement plans.
The phaseout range for single filers who are covered by a workplace retirement plan is $81,000-$91,000 for 2026. That’s up from $79,000-$89,000 for 2025. For single filers who don’t have a workplace retirement plan, no income limits apply. The same goes for if you’re married and neither you nor your spouse have a workplace retirement plan.
For couples that are married and filing jointly, the phaseout range will depend on which spouse is planning to contribute to an IRA and if they’re covered by a workplace retirement plan. If the spouse making the contribution is covered, there will be a phaseout range of $129,000-$149,000 for 2026. That’s up $126,000-$146,000 in 2025.
If the spouse making the IRA contribution isn’t covered by a workplace retirement plan, but their spouse is, there will be a phaseout range of $242,000-$252,000 for 2026. That’s up from $236,000-$242,000 for 2025.
2026 IRA Contribution Limits for Small Business Owners and Self-Employed Individuals
At Modern Wealth, we also enjoy working with clients who are small business owners and self-employed individuals. Do you have a SIMPLE retirement account? If so, your contribution limit will be contingent upon the number of works at your company and your company’s matching contribution election.5 For 2026, it will be either $17,000 or $18,100.
There are also two possible catch-up contribution amounts for SIMPLE plans in 2026 due to a SECURE 2.0 provision. Most SIMPLE plan participants will be eligible for a $4,000 catch-up contribution if they’re 50 or older. For some other SIMPLE plan participants, it will be $3,850. The super catch-up contribution limit for SIMPLE plans is staying at $5,250 in 2026.
What About the Saver’s Credit?
Let’s wrap up this article on 2026 contribution limits by discussing the income limits for the Saver’s Credit. For single filers and married individuals filing separately, the income limit is $40,250 for 2026. It’s double that ($80,500) for married couples filing jointly. If you’re a head of household, it’s $60,375.
Do You Have Questions About the 2026 401(k) and IRA Contribution Limits?
If you feel like you’re constantly playing catch up with saving for retirement, are you taking advantage of the opportunities available to you to maximize your retirement accounts? As you’re reviewing these contribution limits, take some time to revisit your goals for retirement. Have they changed at all over the past year?
So many people just guess how much they’ll need for retirement without actually building a comprehensive financial plan that’s tailored to their goals. Our team is here to help you build that plan and determine what strategies — such as utilizing catch-up and super catch-up contributions — are available to you to help reach your retirement goals. Start a conversation with our team below to address any questions you have about retirement contribution limits and how to reach your retirement goals.
It’s easy to just say, “I’ll wait until next year,” to address your retirement questions, especially during a busy season like the holidays. Then suddenly, next year is here and there may even be more questions you have about retirement. Playing the waiting game with retirement planning can make it difficult to build confidence in your ability to retire.
At Modern Wealth, it’s our mission to help you enjoy life today while building confidence for tomorrow. We look forward to learning more about your unique goals and circumstances and connecting with you about the causes and people that you care about most.
Resources Mentioned in This Article
- 2026 Tax Brackets: IRS Makes Inflation Adjustments
- Strategies to Maximize Your (401)k
- Catch-up Contributions for Your Retirement Plan
- Super Catch-up 401(k) Contributions: Are You Eligible to Make Them?
- What Is Modified Adjusted Gross Income (MAGI)?
- How Much Do You Need to Retire?
- Financial Checkup Time: Review These Annual Items
- Sample Financial Plan
Other Sources
[1] https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
[3] https://www.irs.gov/newsroom/secure-2-point-0-act-changes-affect-how-businesses-complete-forms-w-2
[5] https://www.fidelity.com/learning-center/smart-money/simple-ira-contribution-limits
Investment advisory services offered through Modern Wealth Management, Inc., a Registered Investment Adviser.
The views expressed represent the opinion of Modern Wealth Management a Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.