The IRS annually adjusts the maximum amount taxpayers may contribute to their retirement savings plans 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 deferred 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 contributions of up to $8,000 (a $500 increase from the prior year). Those ages 60 through 63 have catch-up contribution limits of $11,250, the same as 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 rise $500 in 2026 to $17,000.
| 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 contribution limits for IRAs and Roth IRAs increase to $7,500 in 2026 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 household 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 the benefit of tax-free distributions in retirement, provided they own the Roth IRA for a minimum of 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: Olga Ismail is the head of Retirement Plan Consulting and a financial advisor with Provenance Wealth Advisors (PWA), an Independent SEC-Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with PWA Securities, LLC. She can be reached at the firm’s Fort Lauderdale, Fla., office at (954) 712-8888 or info@provwealth.com.
Provenance Wealth Advisors (PWA), 200 E. Las Olas Blvd., 19th Floor, Ft. Lauderdale, FL 33301 (954) 712-8888.
Olga Ismail is a registered representative of and offers securities through PWA Securities, LLC, Member FINRA/SIPC.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Prior to making any investment decision, please consult with your financial advisor about your individual situation.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Before making any investment decision, please consult your financial advisor about your individual situation.
401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10 percent federal tax penalty. Investing involves risk. Investors may incur a profit or loss regardless of the strategy or strategies employed. Future investment performance cannot be guaranteed. Matching contributions from an employer may be subject to a vesting schedule. Please review your retirement plan documents or consult with a financial professional for more information.
Posted on December 9, 2025