2026 Retirement Account Contribution Limits

While we always advise clients to consult with their tax advisor when considering the tax implications of contributions to retirement accounts, we have compiled the information below as an informational guide to help you navigate these decisions.

Workplace Retirement Plans

For 2026, the contribution limit for 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan are as follows:

Under 50 years old: $24,500

50+ years old: $32,500 (due to $8,000 catch-up contribution limit) Note that you are eligible for the catchup on January 1st of the year you turn 50.  You do not need to wait until the day you turn 50 to start contributing your catchup funds.  *New in 2026: If your 401(k) offers a Roth option and you're 50+, you must make your catch-up contributions (the amount over the base limit) to the Roth (post-tax) portion of your 401(k).

60-63 years old: $35,750 (Due to SECURE 2.0 allowing for a higher catch-up contribution for employees aged 60-63.)

Traditional IRAs

IRA Plan Contribution Limits for 2026

Under 50 years old: $7,500

50+ years old: $8,600

Who can contribute to an IRA? Anyone who has earned income of at least the contribution amount can fund an IRA, up to a contribution limit of $7,500 for 2026.

Is my contribution tax deductible? Whether or not an IRA contribution is tax deductible, in part or in full, depends on two factors:

• What is the contributor’s Modified Adjusted Gross Income (MAGI)?
• Is the contributor or his or her spouse covered by an employer plan?

For 2026, the following rules apply : - 

ROTH IRAs

IRA Plan Contribution Limits for 2026 (Total combined Roth and Traditional IRA limit)

Under 50 years old: $7,500

50+ years old: $8,600

• Contributions to a Roth IRA are not tax deductible.
• If you satisfy certain requirements, qualified distributions after you reach age 59½ are tax-free.
• You can make contributions to your Roth IRA after you reach age 70½ as long as you are still working.
• You can leave amounts in your Roth IRA as long as you live.

Who can contribute to a Roth IRA? Whether or not an individual can contribute to a Roth IRA depends on the individual’s income.  The IRS allows for the maximum contribution below certain income levels and a phaseout contribution above that level.

Additional Phase-out Ranges and Limitations

For Saver's Credit and SIMPLE retirement accounts, the following limitations apply.

• The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low and moderate income workers is $80,500 for married couples filing jointly, up from $79,000 for 2025; $60,375 for heads of household, up from $59,250 for 2025; and $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.
• The amount individuals can generally contribute to their SIMPLE retirement accounts is increased to $17,000, up from $16,500 for 2025. Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is increased to $18,100, up from $17,600 for 2025.
• The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is increased to $4,000, up from $3,500 for 2025. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans, which remains $5,250.

Individuals born in 1952 or later must begin taking minimum distributions from tax deferred retirement accounts annually at age 73. The first RMD can be delayed until April 1^st of the following year but whether or not the first RMD is delayed, the second RMD must also be completed in the year the individual turns 74.

Rollovers of Unused Funds from 529 Plans to ROTH IRAs

Beginning with distributions made after December 31, 2023, a beneficiary of a 529 qualified tuition program is permitted to roll over a distribution from the 529 account to a Roth IRA for the beneficiary if certain requirements are met.

• The rollover must be paid through a trustee-to-trustee transfer.
• The rollover amount cannot be more than the Roth IRA annual contributions limit.
• The rollover must be from a 529 account that has been open for more than 15 years.
• The distribution cannot exceed the aggregate amount contributed to the program (and earnings attributed to the contributed amount) before the 5-year period ending on the date of the distribution.

Additional Highlights for 2026

Section 415. Effective Jan. 1, 2026, the limitation on the annual benefit under a defined benefit plan under Internal Revenue Code (IRC) Section 415(b)(1)(A) increases to $290,000 from the 2025 level of $280,000. The limitation for DC plans under IRC Section 415(c)(1)(A) increases to $72,000 for 2026 from the 2025 level of $70,000.

The IRC provides that various other dollar amounts are to be adjusted at the same time, and in the same manner, as the dollar limitation of IRC Section 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2026 are as follows:

• • • As noted above, the limitation under IRC Section 402(g)(1) on the exclusion for elective deferrals described in IRC Section 402(g)(3) is increased to $24,500 from the 2025 level of $23,500.
    • The annual compensation limit under IRC Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased to $360,000 for 2026, up from the 2025 level of $350,000.
    • The dollar limitation under IRC Section 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from will be $235,000 for 2026, up from 2025’s level of $230,000.
    • The dollar amount under IRC Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased to $1,455,000 for 2026, up from the 2025 level of $1,415,000, while the dollar amount used to determine the lengthening of the 5-year distribution period is increased to $290,000 for 2026, up from the 2025 level of $280,000.
    • The limitation used in the definition of “highly compensated employee” under IRC Section 414(q)(1)(B) for 2026 will remain the same at $160,000.
    • The compensation amount under IRC Section 408(k)(2)(C) regarding simplified employee pensions is increased to $800 for 2026, up from $750.

Additional Changes Under SECURE 2.0. Additional changes made under SECURE 2.0 are as follows:-

• • • The limitation on premiums paid with respect to a qualifying longevity annuity contract remains at $210,000 for 2026.
    • Added an adjustment to the deductible limit on charitable distributions. For 2026, this limitation is increased to $111,000, up from the 2025 level of $108,000.
    • A deductible limit for a one-time election to treat a distribution from an individual retirement account made directly by the trustee to a split-interest entity was added. For 2026, this limitation increased to $55,000, up from the 2025 level of $54,000.

Details on these and other retirement-related cost-of-living adjustments for 2026 are in Notice 2025-67, available on IRS.gov.

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Publish Date:

November 13, 2025

Categories

• Industry News & Trends
• Compliance
• Regulation/Legislation
• DC Plan Design
• Retirement Income
• 457 Plans
• Participant Focused
• Plan Administration
• Tax Issues
• 403(b) Plans
• Defined Benefit Plans

By:

ASPPA Net Staff

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