2026 CONTRIBUTION LIMITS
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As we move into 2026, it’s important to stay informed about the updated contribution limits for retirement accounts. These adjustments, driven by inflation and recent legislation, provide an opportunity to boost your long-term savings strategy. Below are the key highlights for 2026:
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Highlights of Changes for 2026
401(k), 403(b), 457, and Thrift Savings Plan
- Annual contribution limit: $24,500 (up from $23,500).
- Age 50+ catch-up: $8,000, bringing your total to $32,500.
- Special catch-up for ages 60–63: Still $11,250 under SECURE 2.0.
IRAs
- Annual contribution limit: $7,500 (up from $7,000).
- Age 50+ catch-up: $1,100, now adjusted for inflation.
Income Limits for IRA Deductions
- Single, covered by a workplace plan: $81,000–$91,000.
- Married filing jointly, contributor covered: $129,000–$149,000.
- Married, contributor not covered but spouse is: $242,000–$252,000.
- Married filing separately: $0–$10,000 (unchanged).
These updates also affect Roth IRA eligibility and the Saver’s Credit.
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Impact of SECURE 2.0 on 2026 limits
- Catch-Up Contributions Indexed for Inflation
- For IRAs, the age 50+ catch-up limit now adjusts annually for cost-of-living. In 2026, it rises to $1,100 (up from $1,000).
- Higher Catch-Up for Ages 60–63
- SECURE 2.0 introduced an enhanced catch-up category for participants aged 60–63 in 401(k), 403(b), 457, and Thrift Savings Plans.
- This remains $11,250 in 2026, separate from the standard $8,000 catch-up for age 50+.
- Mandatory Roth Catch-Up for High Earners
- Starting in 2026, employees earning $150,000+ (indexed from $145,000) must make catch-up contributions as Roth (after-tax) in employer plans. Plans must allow Roth contributions or these employees cannot make catch-ups.
- Paper Statement Requirement
- Plans must send at least one paper statement per year unless participants opt for electronic delivery.
- Plan Compliance Deadlines
- Employers must update plan documents by December 31, 2026, but operational compliance starts January 1, 2026.
Overall Impact
- More Savings Flexibility: Higher limits and inflation indexing help participants save more.
- Administrative Adjustments: Employers need Roth capability for high earners and systems for paper statements.
- Tax Planning Shift: High earners must plan for Roth contributions, affecting pre-tax strategies.
These changes aim to help individuals save more effectively for retirement, provide flexibility in managing retirement savings, and ensure that more people can benefit from employer contributions.
For detailed guidance on how these changes may affect your retirement planning, consult with the experts at TRA. We’re here to help you navigate these new regulations and optimize your retirement savings strategy.
- Catch-Up Contributions Indexed for Inflation
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FIDUCIARY RESPONSIBILITY TO MONITOR
Type of Limitation |
2026 |
2025 |
2024 |
|---|---|---|---|
| Elective Deferral Limit (401(k) and 403(b) Plans; Not Including Catch-Up Contributions) | $24,500 | $23,500 | $23,000 |
| Catch-Up Contribution Limit (401(k) and 403(b) Plans) | $8,000 | $7,500 | $7,500 |
| Elective Deferral Limit (SIMPLE Plans) | $17,000 | $16,500 | $16,000 |
| Catch-Up Contribution Limit (SIMPLE Plans) | $4,000 | $3,500 | $3,500 |
| Cash Balance/Defined Benefit Annual Contribution Limit | $290,000 | $280,000 | $275,000 |
| Defined Contribution Plan Limit | $72,000 | $70,000 | $69,000 |
| Annual Compensation Limit | $360,000 | $350,000 | $345,000 |
| Key Employee Threshold | $235,000 | $230,000 | $220,000 |
| Highly Compensated Employee Threshold | $160,000 | $160,000 | $155,000 |
| Income Subject to Social Security Tax | $184,500 | $176,100 | $168,600 |
| Secure 2.0 HCE Roth Catch-up Threshold | $150,000 | $140,000 | N/A |
Below is a summary of the highlights to be aware of:
- The annual 401(k) and 403(b) limit has increased to $24,500
- The Catch-Up Contribution Limit (401(k) and 403(b) Plans) increased to $8,000
- The Elective Deferral limit (SIMPLE Plans) has increased to $17,000
- The Cash Balance/Defined Benefit limit has increased to $290,000
- The Defined Contribution Plan Limit increased to $72,000
- The annual Compensation limit increased to $360,000
- The Key Employee threshold increased to $235,000
- The Income Subject to Social Security Tax increased to $184,500
