2026 401(k) & IRA Contribution Limits: New Catch-Up Rules

Every November the IRS sets the contribution limits for the next tax year, and for 2026 nearly all of them went up. The headline numbers are simple, but 2026 also brings the first year of a SECURE 2.0 rule that quietly changes how high earners make catch-up contributions. This guide lays out every limit in one table, explains the new Roth catch-up rule in plain English, shows the Roth IRA income phase-outs, and walks through what maxing out actually does to your retirement balance over time.

All figures here come from IRS Notice 2025-67, the official retirement-plan limits notice released in November 2025, and the inflation adjustments in Rev. Proc. 2025-32. Nothing in this article is a forecast. These are the confirmed numbers for the 2026 tax year.

2026 contribution limits at a glance

Here is every limit that matters, with the 2025 figure for comparison. The 401(k) column also covers 403(b), most 457(b) plans, and the federal Thrift Savings Plan, which share the same elective deferral limit.

Source: IRS Notice 2025-67, November 2025. Catch-up amounts are in addition to the standard deferral limit.

What is the 401(k) contribution limit for 2026?

The 2026 401(k) elective deferral limit is $24,500, a $1,000 increase from $23,500 in 2025. This is the maximum you can route from your own paycheck into a traditional or Roth 401(k) during the year, and the same limit applies to 403(b) plans, most governmental 457(b) plans, and the federal Thrift Savings Plan. It does not include anything your employer adds.

Your employer match sits on top of that. When you combine your deferrals, the company match, and any profit sharing, the total that can land in your account jumps to $72,000 for 2026 (up from $70,000), or more once catch-up contributions are added. Most people never reach the combined cap, but high earners with generous matches sometimes do. To see how a given contribution rate plays out against your salary and match, run the numbers in the 401(k) calculator.

One practical note: the limit is per person, not per plan. If you change jobs mid-year and contribute to two different 401(k) plans, your combined deferrals still cannot exceed $24,500. It is your responsibility, not the plans', to track that total.

What are the catch-up contribution limits for 2026?

Catch-up contributions let older savers add more once they hit age 50. For 2026 the standard 401(k) catch-up is $8,000, up from $7,500, bringing the total possible employee deferral to $32,500 for anyone 50 or older.

SECURE 2.0 added a second, larger tier. If you turn 60, 61, 62, or 63 at any point during 2026, your catch-up is $11,250 instead of $8,000, for a total deferral of $35,750. The moment you turn 64 the super catch-up disappears and you drop back to the standard $8,000 catch-up. This is a narrow, four-year window, so savers in their late 50s should plan to use it.

The IRA catch-up also rose for the first time in years. Thanks to a SECURE 2.0 indexing provision it is now $1,100 (up from a flat $1,000), making the total IRA limit $8,600 for those 50 and older. If you are behind on retirement savings, the catch-up window in your 50s and early 60s is the single most powerful tool the tax code gives you to close the gap.

What is the new Roth catch-up rule for high earners in 2026?

This is the change that catches people off guard. Beginning in 2026, if your wages from your employer were more than $150,000 in 2025, any catch-up contribution you make to that employer's 401(k) must be a Roth (after-tax) contribution. You can still make the full catch-up, but you no longer get the upfront tax deduction on it.

A few details matter. The threshold looks at your prior-year FICA wages from the specific employer sponsoring the plan, as reported in Box 3 of your W-2, not your household income or your total income from every source. SECURE 2.0 set the figure at $145,000, and the $150,000 you will see for 2026 is that base amount after its first inflation adjustment. The threshold rises each year.

If your plan does not offer a Roth option and you are over the wage threshold, you may not be able to make catch-up contributions at all until the plan adds Roth, so it is worth confirming with your HR or plan administrator early in the year. The upside of being forced into Roth is real: that money grows and comes out tax-free in retirement. The downside is a higher tax bill today, which can nudge your take-home pay down if you do not adjust elsewhere.

What is the IRA contribution limit for 2026?

The 2026 IRA contribution limit is $7,500, up from $7,000, and it covers traditional and Roth IRAs combined. You cannot put $7,500 in each; the limit is the total across both. Add the $1,100 catch-up at age 50 and the ceiling becomes $8,600.

Your IRA limit is completely separate from your workplace 401(k) limit, so a 45-year-old can contribute the full $24,500 to a 401(k) and another $7,500 to an IRA in the same year. Whether a traditional IRA contribution is tax-deductible depends on your income and whether you are covered by a workplace plan, but the contribution itself is always allowed. Use the retirement calculator to see how stacking both accounts changes your projected nest egg.

What are the 2026 Roth IRA income limits?

Roth IRAs have an income ceiling that traditional IRAs and 401(k)s do not. For 2026 the ability to contribute phases out across these ranges, based on modified adjusted gross income (MAGI):

Inside the range your contribution limit shrinks on a sliding scale. Above the top number you cannot contribute to a Roth IRA directly, though many high earners use a "backdoor Roth" by contributing to a traditional IRA and converting it. There is no income limit on a Roth 401(k), which is one reason the new Roth catch-up rule effectively pushes more high earners toward Roth saving inside their workplace plan.

How much does maxing out actually grow?

Limits are abstract until you see what they compound into. Suppose you contribute the full $24,500 every year for 30 years and earn a 7% average annual return. Here is the math, using the future value of an ordinary annuity:

Annual contribution: $24,500 Years invested: 30 Assumed return: 7% per year Total you contribute: $24,500 x 30 = $735,000 Future value: $24,500 x [(1.07^30 - 1) / 0.07] = $24,500 x 94.461 = $2,314,289

You put in $735,000 over three decades, but you end with about $2.31 million. Roughly $1.58 million of that balance is investment growth, not money out of your paycheck. That gap is the entire point of tax-advantaged accounts, and it is what the animation above is drawing in real time. Change any input and the picture shifts fast; the compound interest calculator lets you test your own contribution, return, and time horizon.

Returns are never guaranteed and 7% is an assumption, not a promise. Markets fall as well as rise, and your real-world result depends on fees, timing, and how consistently you keep contributing through downturns. The lesson is not the exact dollar figure but the shape of the curve: time does more of the work than the size of any single contribution.

How do contributions affect your paycheck and withholding?

Traditional (pre-tax) 401(k) contributions lower your taxable income now, so they reduce the federal tax withheld from each check. A $24,500 contribution for someone in the 22% bracket trims roughly $5,390 off their federal tax bill for the year. Roth contributions do the opposite: the money is taxed first, so your take-home pay is lower today but your withdrawals are tax-free later.

Because contributions shift your taxable income, they interact with the rest of your withholding. If you ramp contributions up or down mid-year, or if the new Roth catch-up rule moves part of your saving to after-tax, it is worth re-checking your Form W-4 so you are not badly over- or under-withheld at tax time. The W-4 calculator shows how a change in deferrals flows through to your paycheck. For reference, the 2026 standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for heads of household.

What should you do before year-end?

A short checklist for 2026. First, raise your contribution percentage now rather than in December; spreading the increase across more paychecks softens the hit to each one. Second, if you are 50 or older, decide whether you can use the catch-up, and if you turn 60 to 63 this year, plan around the larger $11,250 window before it closes. Third, if you earn over $150,000, confirm your plan offers Roth so your catch-up is not blocked. Fourth, always contribute at least enough to capture your full employer match before anything else; it is the only guaranteed return in investing. Finally, if your income is near the Roth IRA phase-out, check your MAGI before contributing so you do not have to unwind an excess contribution later.

401(k) or IRA: which should you fund first in 2026?

With two separate limits and only so much cash, the order you fill these accounts matters more than most people think. A widely used priority for 2026 looks like this. First, contribute to your 401(k) up to the full employer match; a 50% match on the first 6% of pay is an instant 50% return you cannot get anywhere else. Second, if you are eligible, max a Roth IRA at $7,500, because it gives you tax-free growth and far more investment choice than a typical workplace menu. Third, circle back and push your 401(k) toward the $24,500 cap. Fourth, if you still have money to invest, use a taxable brokerage account or, for high earners shut out of the Roth IRA, a backdoor Roth.

There are sensible reasons to vary this. If your 401(k) has unusually low fees and strong index funds, filling it before the IRA is reasonable. If you expect to be in a much lower tax bracket in retirement, leaning on pre-tax 401(k) deferrals over Roth can win. And if you have a high-deductible health plan, an HSA often deserves a spot near the top of the list because of its triple tax advantage. The point is to be deliberate: capture the match, then choose your accounts based on fees, tax treatment, and your own bracket rather than filling whichever account is most convenient. The retirement calculator makes it easy to compare two funding orders side by side.

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