Retirement Savings Contribution Limits Increase for 2026 by Jonathan Kraes, CPA
Posted on December 11, 2025
by
Jonathan Kraes
Each year, the IRS announces the maximum amount taxpayers may contribute to their retirement savings plans adjusted for inflation. For 2026, these limits increase across all account types, giving taxpayers more opportunities to improve their financial security in retirement.
Employer-Sponsored Retirement Plans
Taxpayers with access to employer-sponsored retirement savings plans, such as 401(k)s, 403(b)s and certain 457 plans, can make pre-tax salary deferral contributions of up to $24,500 to these plans in 2026, a $1,000 increase from the previous year.
Plan participants ages 50 and older may make additional catch-up contributions of $8,000, up from $7,500 in 2025. For employees ages 60 through 63, the maximum catch-up contribution in 2026 is $11,250, the same as it was in 2025.
However, beginning on Jan. 1, 2026, employees with earnings of more than $150,000 in tax year 2025 must treat their catch-up contributions as after-tax Roth contributions. Due to this change enacted by the SECURE Act 2.0, affected taxpayers will lose a tax deduction for their catch-up contributions and the ability to reduce their taxable income by those additional amounts. By contrast, they will gain the advantages of tax-free withdrawals from Roth 401(k)s after age 59½ and the absence of annual required minimum distributions (RMDs) from those accounts when they reach age 73.
For self-employed taxpayers with solo 401(k)s, the maximum amount of both employee salary deferrals and profit-sharing contributions made by their businesses in 2026 is $72,000, up from $70,000 last year. Contributions to SIMPLE retirement accounts (also known as SIMPLE IRAs) also increase in 2026 to $17,000, a $500 increase from the prior year. Business owners with Schedule C income must complete all employee contributions and employer matches by the April 2027 tax filing deadline.
| | 2025 Limit | 2026 Limit |
| 401(k), 403(b) or 457 Employee Contribution Limit | $23,500 | $24,500 |
| Catch-Up 401(k), 403(b) or 457 Contribution Limit | $7,500 | $8,000 |
| Catch-Up Contribution Limit for Ages 60, 61, 62 & 63 | $11,250 | $11,250 |
| Defined Contribution Plan and SEP Contribution Limit | $70,000 | $72,000 |
| SIMPLE 401(k) and Simple IRA Contribution Limit | $16,500 | $17,000 |
| Catch-Up SIMPLE 401(k) and Simple IRA Contribution Limit | $3,500 | $4,000 |
The maximum compensation that may be considered for benefit calculations and nondiscrimination testing in 2025 increases to $360,000, up from $350,000 in 2025.
Individual Retirement Accounts
The 2026 contribution limits for IRAs and Roth IRAs increase to $7,500 from $7,000, while the catch-up contributions for individuals aged 50 and over rise $100 to $1,100.
Traditional IRA contributions may be deductible depending on whether a workplace retirement plan also covers the taxpayer and their spouse. However, the deduction may be reduced or phased out entirely based on the taxpayer’s income and filing status.
- For single taxpayers covered by a workplace retirement plan, the phase-out range increases to between $81,000 and $91,000, up from between $79,000 and $89,000 in 2025.
- For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range increases to between $129,000 and $149,000, up from between $126,000 and $146,000 in the prior year.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range grows to between $242,000 and $252,000, up from between $236,000 and $246,000 in 2025.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range isn’t subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
The IRS also increases the maximum income limits individuals must meet to be eligible to contribute to a Roth IRA in 2024, based on their income and filing status.
- Singles and heads of households who earn up to $168,000 in 2026 may contribute to a Roth IRA, although the maximum contribution will begin to phase out when income reaches $153,000.
- For married couples filing joint tax returns, the phase-out range increases to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
If a taxpayer earns too much income to contribute to a Roth IRA in 2026, they may contribute to a traditional IRA. They may later convert that account to a Roth, pay the related taxes up front, and receive tax-free distributions in retirement, provided they own the Roth IRA for at least five years.
| | 2025 Limit | 2026 Limit |
| Maximum Traditional IRA and Roth IRA Contribution | $7,000 | $7,500 |
| Catch-Up IRA Contribution | $1,000 | $1,100 |
The deadline for making annual contributions to traditional IRAs or Roth IRAs is April 15 of the year following the contribution. This additional time allows individuals to assess their tax liabilities at the end of the year and determine whether it is more beneficial to claim the deduction for that year by contributing to a traditional IRA or paying taxes now on contributions to a Roth IRA, for which future withdrawals in retirement will be tax-free.
About the Author: Jonathan Kraes, CPA, is a director of Tax Services with Berkowitz Pollack Brant, where he provides income, gift and estate tax planning and advisory services to high-net-worth individuals and organizations, including hedge and private equity fund investment managers, corporate executives and technology entrepreneurs. He can be reached at the CPA firm’s Boca Raton, Fla., office at (646) 213-7600 or info@bpbcpa.com.
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