The beginning of a new year is a good time to assess your retirement savings rate and determine whether your retirement contributions will be directed to a pre-tax or post-tax (Roth) account. If you are self-employed, you may still have time to set up and fund a plan for the prior calendar year through your tax-filing deadline. Most limits have increased for 2026.
2026 Retirement Plan Contribution Limits
| Plan Type | 2026 Contribution Limit |
|---|---|
| 401(k), 403(b), 457(b), Roth 401(k) elective deferral (under age 50) | $24,500 |
| Catch-up contribution (ages 50–59 or 64+) | $8,000 |
| Catch-up contribution (ages 60–63) | $11,250 |
| Defined contribution plans – total employee + employer (age 50 and older, plus age-dependent catch-up where applicable) | $72,000 |
| SIMPLE IRA elective deferral (age 50 and older, plus age-dependent catch-up where applicable) | $17,000* |
| Defined benefit plans – annual benefit limit | $290,000 |
*The basic SIMPLE IRA employee contribution limit is $17,000. Those age 50 to 59 or age 64 and older can save an additional $4,000 as a catch-up contribution. Those age 60 to 63 can save $5,250 as a “super” catch-up contribution. Employees of companies with 25 or fewer employees may now contribute more than the basic limits. For these employees, the contribution limit is $18,100. The catch-up limit is lower, $3,850, for those age 50 to 59 or age 64 and older, but remains $5,250 for those age 60 to 63.
2026 Individual Retirement Account (IRA) Contribution Limits
| Account Type | 2026 Contribution Limit |
|---|---|
| Traditional IRA / Roth IRA (under age 50) | $7,500 |
| Traditional IRA / Roth IRA (age 50 and older) | $8,600 |
A Roth IRA is often an excellent retirement account to fund consistently, offering tax-free growth and tax-free withdrawals after age 59½. In most cases, if you are eligible to contribute, it is generally advisable to do so.
This type of post-tax account can still be funded for 2025 up until the tax filing deadline; however, there are income limits. If your income exceeds the limits to fund a Roth IRA directly, a backdoor Roth IRA may be an option for you.
2026 Phase-Out of Roth IRA Contribution Eligibility
Modified Adjusted Gross Income (MAGI)
| Filing Status | 2026 Roth IRA MAGI Phase-Out Range |
|---|---|
| Single | $153,000 – $168,000 |
| Married Filing Jointly | $242,000 – $252,000 |
| Married Filing Separately | $0 – $10,000 |
2026 Health Savings Account (HSA) Contribution Limits
While it isn’t a retirement account, a Health Savings Account (HSA) offers a current tax deduction, tax-free growth, and tax-free withdrawals when used for qualified medical expenses. If your high-deductible health plan is HSA-eligible, it’s worth considering contributing to one.
HSAs can also be funded for 2025 up until your tax-filing deadline. 2026 limits have increased slightly.
| Coverage Type | 2026 HSA Contribution Limit |
|---|---|
| Individual coverage | $4,400 |
| Family coverage | $8,750 |
What Changed from 2025 to 2026?
Key year-over-year updates at a glance:
- 401(k), 403(b), 457(b), Roth 401(k)
Elective deferral limit increased from $23,500 to $24,500.
Standard catch-up (age 50–59 or 64+) increased from $7,500 to $8,000.
“Super” catch-up for ages 60–63 remains $11,250. - Defined contribution plans
Total employee + employer contributions increased from $70,000 to $72,000.
Catch-up contributions for age 50+ also increased from $7,500 to $8,000 (Age 50-59, 64+) and stayed the same for those age 60-63 ($11,250) - Defined benefit plans
Annual benefit limit increased from $280,000 to $290,000. - SIMPLE IRA
Basic elective deferral limit increased from $16,500 to $17,000.
Catch-up contributions for age 50+ also increased from $3,500 to $4,000 (Age 50-59, 64+) for plans with over 25 employees and stayed the same for those age 60-63 ($5,250) - Traditional and Roth IRA contributions
Under age 50: increased from $7,000 to $7,500.
Age 50+: total contribution limit increased from $8,000 to $8,600. - Roth IRA income limits
Single filers: phase-out range moved from $150,000–$165,000 to $153,000–$168,000.
Married filing jointly: phase-out range moved from $236,000–$246,000 to $242,000–$252,000.
Married filing separately: phase-out range remains $0–$10,000. - HSA contribution limits
Individual coverage: increased from $4,300 to $4,400.
Family coverage: increased from $8,550 to $8,750.
Final Thoughts
Effective planning involves maximizing retirement plan contributions in a way that aligns with your individual situation. The most tax-advantaged account for you over the long term may not be the one that provides the largest tax deduction today. Reviewing these strategies now can provide meaningful long-term benefits. Please get in touch if you have any questions.
Thank you.
