2026 Brings Good News for Retirement Savers
The IRS has officially announced the retirement contribution limits for 2026, and there's plenty to celebrate. Whether you're just starting your savings journey or racing toward retirement, these increased limits give you more room to build your nest egg tax-efficiently.
Let's break down everything you need to know.
The Big Numbers: 2026 Contribution Limits
401(k), 403(b), and 457 Plans
| Limit Type | 2025 | 2026 | Change |
|---|---|---|---|
| Employee Deferral (Under 50) | $23,500 | $24,500 | +$1,000 |
| Catch-up (Ages 50-59) | $7,500 | $8,000 | +$500 |
| Super Catch-up (Ages 60-63) | $11,250 | $11,250 | — |
| Total for 50+ | $31,000 | $32,500 | +$1,500 |
| Total for 60-63 | $34,750 | $35,750 | +$1,000 |
| Overall Limit (incl. employer) | $70,000 | $72,000 | +$2,000 |
Individual Retirement Accounts (IRAs)
| Limit Type | 2025 | 2026 | Change |
|---|---|---|---|
| Annual Contribution | $7,000 | $7,000 | — |
| Catch-up (50+) | $1,000 | $1,000 | — |
| Total for 50+ | $8,000 | $8,000 | — |
Health Savings Accounts (HSAs)
| Limit Type | 2025 | 2026 | Change |
|---|---|---|---|
| Individual Coverage | $4,300 | $4,400 | +$100 |
| Family Coverage | $8,550 | $8,750 | +$200 |
| Catch-up (55+) | $1,000 | $1,000 | — |
SECURE 2.0 Act: The Game Changers for 2026
The SECURE 2.0 Act of 2022 introduced several provisions that take full effect in 2026. Here's what you need to know:
🚀 Super Catch-Up Contributions (Ages 60-63)
This is the headline feature for 2026. If you're between ages 60 and 63, you can now contribute significantly more to your 401(k):
- Regular employee limit: $24,500
- Super catch-up (60-63): $11,250
- Total possible: $35,750
That's $3,250 more than someone aged 50-59 can contribute!
This provision recognizes that your early 60s are often prime years to accelerate savings before retirement. If you're in this age group, don't leave this money on the table.
⚠️ Roth Catch-Up Requirement for High Earners
Important change for 2026: If you earn $150,000 or more in the previous year, all catch-up contributions must be made on a Roth (after-tax) basis.
This means:
- Your regular 401(k) contributions can still be pre-tax or Roth
- But the catch-up portion ($8,000 or $11,250) must go to your Roth 401(k)
What this means for you:
- You'll pay taxes now instead of in retirement
- Your catch-up contributions will grow tax-free forever
- You won't owe taxes on qualified withdrawals
While this removes a choice for high earners, Roth contributions are often advantageous if you expect to be in a similar or higher tax bracket in retirement.
How to Maximize Your 2026 Contributions
Step 1: Know Your Numbers
Based on your age, here's your maximum 401(k) contribution for 2026:
| Your Age | Maximum 401(k) |
|---|---|
| Under 50 | $24,500 |
| 50-59 | $32,500 |
| 60-63 | $35,750 |
| 64+ | $32,500 |
Step 2: Adjust Your Payroll Contributions Early
Don't wait until December to max out. Divide your target by your number of pay periods:
- Under 50: $24,500 ÷ 26 paychecks = $942/paycheck
- Ages 50-59: $32,500 ÷ 26 paychecks = $1,250/paycheck
- Ages 60-63: $35,750 ÷ 26 paychecks = $1,375/paycheck
Step 3: Don't Forget the Employer Match
Your employer's matching contributions don't count toward your employee limit. The combined limit (yours + employer) is:
- Under 50: $72,000
- 50+: $80,000
- 60-63: $83,250
Always contribute at least enough to get your full employer match—it's free money!
Step 4: Max Your IRA Too
After your 401(k), consider maxing your IRA:
- Under 50: $7,000
- 50+: $8,000
If you're over the income limits for Roth IRA contributions, look into the backdoor Roth strategy.
Step 5: HSA as a Stealth Retirement Account
If you have a high-deductible health plan, your HSA offers triple tax benefits:
- Tax-deductible contributions
- Tax-free growth
- Tax-free withdrawals for medical expenses
Max it out ($4,400 individual / $8,750 family), invest the funds, and let it grow for retirement healthcare costs.
Key Dates to Remember
| Date | Action |
|---|---|
| January 2026 | Update 401(k) contribution elections |
| April 15, 2026 | Deadline for 2025 IRA contributions |
| December 31, 2026 | Last day for 2026 401(k) contributions |
| April 15, 2027 | Deadline for 2026 IRA contributions |
The Power of These Increases Over Time
Don't underestimate the impact of these "small" increases. An extra $1,000/year in your 401(k), invested at 7% annual returns:
- After 10 years: ~$14,800
- After 20 years: ~$43,900
- After 30 years: ~$101,100
And that's just one year's increase. Compound the higher limits year after year, and you're looking at a significantly larger retirement nest egg.
What If You Can't Max Out?
Not everyone can contribute $24,500+ per year, and that's okay. Here's a priority order:
- Get the full employer match (free money!)
- Pay off high-interest debt (usually 7%+ interest)
- Build an emergency fund (3-6 months expenses)
- Max out Roth IRA ($7,000-$8,000)
- Increase 401(k) toward maximum
- Max HSA if available
- Taxable brokerage for additional savings
Every dollar counts. Increase your contribution by just 1% each year, and you'll be surprised how quickly it adds up.
Bottom Line
The 2026 IRS contribution limits give you more room to save for retirement:
- ✅ 401(k): $24,500 base (+$1,000 from 2025)
- ✅ Catch-up (50-59): $8,000 (+$500 from 2025)
- ✅ Super catch-up (60-63): $11,250 (same as 2025)
- ✅ HSA: $4,400 individual / $8,750 family
- ⚠️ High earners ($150K+): Catch-up must be Roth
Take action now—update your payroll contributions, review your IRA strategy, and make 2026 your best savings year yet.
Ready to see how these increased limits affect your retirement projections? RetirePro can model your specific scenario with these updated 2026 limits. Update your plan now →