On November 13, 2025, the IRS released IRS Notice 2025-67 (IR-2025-111) announcing updated contribution limits for 401(k) plans, IRAs, and other retirement vehicles for tax year 2026. The increases apply to contributions made January 1 through December 31, 2026.
All 2026 Retirement Contribution Limits at a Glance
| Account / Limit Type | 2025 | 2026 | Change |
|---|---|---|---|
| 401(k), 403(b), 457 employee limit | $23,500 | $24,500 | +$1,000 |
| Catch-up contribution (age 50–59, 64+) | $7,500 | $8,000 | +$500 |
| Special catch-up (age 60, 61, 62, 63) | $11,250 | $11,250 | No change |
| Total 401(k) limit incl. employer contributions | $70,000 | $77,000 | +$7,000 |
| Traditional and Roth IRA limit | $7,000 | $7,500 | +$500 |
| IRA catch-up (age 50+) | $1,000 | $1,100 | +$100 |
| SIMPLE IRA employee limit | $16,500 | $17,000 | +$500 |
| SEP-IRA limit | $69,000 | $70,000 | +$1,000 |
| HSA (self-only) | $4,300 | $4,400 | +$100 |
| HSA (family) | $8,550 | $8,750 | +$200 |
401(k), 403(b), and 457 Plan Details
The employee elective deferral limit — the amount you can contribute from your own paycheck — rises to $24,500 for 2026. This applies equally to traditional (pre-tax) and Roth 401(k) contributions, and to 403(b) plans (common for teachers and nonprofit workers) and 457(b) plans (common for government employees).
The total limit including employer matching and profit-sharing contributions increases to $77,000. If your employer offers a generous match, you may reach this combined cap even if you don't maximize your own contribution.
The special SECURE 2.0 catch-up for employees aged 60, 61, 62, or 63 remains at $11,250 — giving workers in that window a total possible contribution of $35,750 ($24,500 + $11,250). This is intentionally higher than the standard age-50+ catch-up of $8,000 ($24,500 + $8,000 = $32,500) to help workers in the final sprint before retirement accelerate their savings.
IRA Contribution Limits and Income Rules
The combined contribution limit for traditional and Roth IRAs rises to $7,500 for 2026. This limit applies across all your IRA accounts combined — you can't contribute $7,500 to a traditional IRA and another $7,500 to a Roth IRA in the same year. The catch-up for those 50 and older rises to $1,100 (now inflation-indexed under SECURE 2.0, up from its 20-year freeze at $1,000).
Roth IRA Income Phase-Out Ranges for 2026
Direct Roth IRA contributions phase out at higher income levels:
| Filing Status | Phase-out Begins | Contribution Eliminated |
|---|---|---|
| Single / Head of Household | $150,000 | $165,000 |
| Married Filing Jointly | $236,000 | $246,000 |
| Married Filing Separately | $0 | $10,000 |
If your MAGI exceeds the upper limit, you can't contribute directly to a Roth IRA — but a backdoor Roth conversion (contributing to a non-deductible traditional IRA then converting to Roth) remains available at any income level, subject to the pro-rata rule if you have other pre-tax IRA balances.
Traditional IRA Deductibility Phase-Outs for 2026
Anyone can contribute to a traditional IRA, but the deduction phases out if you (or your spouse) are covered by a workplace retirement plan:
| Situation | Phase-out Range |
|---|---|
| Single, covered by workplace plan | $79,000 – $89,000 |
| Married filing jointly, covered by workplace plan | $126,000 – $146,000 |
| Married, only spouse is covered | $236,000 – $246,000 |
| Single or married, neither covered | No limit — full deduction always available |
The Tax Math: How Much Do These Limits Actually Save?
| Contribution | Federal Tax Bracket | Tax Saved (Traditional) |
|---|---|---|
| $24,500 (full 401k) | 22% | $5,390 |
| $24,500 (full 401k) | 24% | $5,880 |
| $32,500 (age 50+ 401k) | 22% | $7,150 |
| $35,750 (age 60–63 401k) | 22% | $7,865 |
| $7,500 (full IRA) | 22% | $1,650 |
| $8,600 (full IRA age 50+) | 22% | $1,892 |
These are federal income tax savings only. Traditional contributions also reduce your MAGI, which can unlock other benefits — lower ACA premiums, Roth IRA eligibility, reduced phase-outs for credits.
Social Security Wage Base for 2026
The maximum earnings subject to Social Security tax rises to $184,500 in 2026 (up from $176,100 in 2025). Income above this threshold still faces the 1.45% Medicare tax but not the 6.2% Social Security tax. For high earners, this represents $184,500 × 6.2% = $11,439 in maximum Social Security tax for the year.
What to Do Right Now
- Update your 401(k) deferral percentage in your employer's payroll or benefits portal. To hit $24,500 across 26 biweekly pay periods, you need to defer about $942 per paycheck.
- Verify your age-based catch-up eligibility. Turn 50 in 2026? You can contribute the extra $8,000 starting with your first paycheck after your birthday. Turn 60–63 in 2026? Your limit jumps to $11,250 in catch-up.
- Fund your IRA early. You have until April 15, 2027 to make 2026 IRA contributions — but contributing early in the year gives your money more time in the market.
- Check Roth vs. traditional. If you expect to be in a higher bracket in retirement, Roth contributions (no deduction now, tax-free later) may win. If you expect a lower bracket in retirement, traditional (deduction now, taxed later) often wins. When uncertain, splitting between both hedges your bets.
- Don't forget the HSA. If you're on a High-Deductible Health Plan, the 2026 HSA limit is $4,400 (self-only) or $8,750 (family). HSA contributions are triple tax-advantaged — deductible going in, tax-free for medical expenses, and tax-free in retirement for medical costs.
Source
All figures sourced from IRS IR-2025-111 and IRS Notice 2025-67. Use our income tax calculator to see how maxing your retirement contributions affects your overall 2026 federal tax bill.
Contribution Strategies to Maximize Your Limits
Knowing the contribution limits is step one. Step two is knowing how to use them most effectively given your income, tax bracket, and retirement timeline. The right sequencing of contributions can make a meaningful difference over time.
The Priority Order for Most Workers
For working-age Americans in the 22% or higher bracket, the generally recommended priority order is: (1) contribute enough to your 401(k) to capture the full employer match — this is a 50–100% immediate return on that contribution; (2) max an HSA if you have a qualifying high-deductible health plan — triple tax advantage; (3) max the 401(k) to the full contribution limit; (4) contribute to an IRA. This sequencing maximizes pre-tax room and lowers AGI, which can improve eligibility for other credits and deductions.
Income Limits for IRA Deductibility (2025)
If you're covered by a workplace retirement plan, your ability to deduct a traditional IRA contribution phases out:
- Single filers: Full deduction below $79,000; phase-out $79,000–$89,000; no deduction above $89,000
- Married filing jointly (covered spouse): Full deduction below $126,000; phase-out $126,000–$146,000
- Married filing jointly (non-covered spouse): Phase-out $236,000–$246,000
Above these limits, non-deductible traditional IRA contributions (for the backdoor Roth) are still available for most people without existing pre-tax IRA balances.
Catch-Up Contributions for Age 50+
Filers age 50 and older can contribute an additional $7,500 to a 401(k) (total $31,000) and an additional $1,000 to an IRA (total $8,000) in 2025. Under SECURE 2.0, workers aged 60–63 have an enhanced catch-up limit of $11,250 for 401(k) plans in 2025 (total $34,750).
Self-Employed Contribution Opportunities
Self-employed individuals can contribute to both the employee and employer sides of a Solo 401(k). The employee side (up to $23,500) reduces income tax. The employer side (up to 25% of net self-employment income) is a business expense that also reduces net profit — and therefore SE taxable income. Combined contributions up to $70,000 are possible, making the Solo 401(k) one of the most powerful tax tools available to freelancers and independent contractors.
Use our income tax calculator to model how a pre-tax retirement contribution changes your estimated federal tax, and our full contribution limits guide for complete 2025 limit tables and income phase-out details.