Retirement accounts are one of the simplest ways to lower your tax bill, but only up to a point. Each type of account has an annual limit, and most of those limits went up for 2026. There's also a new rule this year that changes how some higher earners make catch-up contributions.
Here's a plain-English rundown of the 2026 numbers, all taken from IRS announcements.
2026 limits at a glance
| Account (2026) | Base limit | Catch-up, age 50+ | Catch-up, age 60–63 |
|---|---|---|---|
| 401(k), 403(b), governmental 457, TSP | $24,500 | $8,000 | $11,250 (instead of $8,000) |
| SIMPLE IRA / SIMPLE 401(k) | $17,000 | $4,000 | $5,250 (instead of $4,000) |
| Traditional or Roth IRA | $7,500 | $1,100 | Same as age 50+ |
| SEP IRA | Lesser of 25% of compensation or $72,000 | None | None |
| HSA, self-only coverage | $4,400 | $1,000 (age 55+) | Same as age 55+ |
| HSA, family coverage | $8,750 | $1,000 (age 55+) | Same as age 55+ |
401(k), 403(b) and 457 plans
For 2026, you can defer up to $24,500 of your pay into a 401(k), 403(b), governmental 457 plan or the federal Thrift Savings Plan, up from $23,500 in 2025.
If you're 50 or older, you can add a catch-up contribution of $8,000, for a total of $32,500. Under SECURE 2.0, people who turn 60, 61, 62 or 63 during 2026 get a higher catch-up of $11,250 instead, if their plan allows it. That brings their total to $35,750.
The total that can go into a defined contribution plan from all sources, including employer matches and profit sharing, is $72,000 for 2026 (not counting catch-ups).
New for 2026: Roth catch-up for higher earners
SECURE 2.0 added a rule that catch-up contributions for certain higher earners must be made as Roth (after-tax) contributions. The IRS gave plans a transition period that ended December 31, 2025, so the rule now applies.
For 2026, it applies if your FICA wages from the employer sponsoring your plan were more than $150,000 in 2025. If that's you, your catch-up contributions in 2026 must go in as Roth. Your regular $24,500 deferral can still be pre-tax.
Say you're 55 and earned $180,000 in wages from your employer last year. You can still defer $24,500 pre-tax, but your $8,000 catch-up has to be Roth. That means no deduction now, but qualified withdrawals later are tax-free.
The IRS issued final regulations in September 2025. They formally apply starting in 2027, but plans must follow the law in 2026 using a reasonable, good-faith interpretation. Check with your plan administrator about how your plan is handling it.
Traditional and Roth IRAs
The 2026 IRA limit is $7,500, up from $7,000. The catch-up for those 50 and older is now indexed to inflation and rises to $1,100, so the total is $8,600. The limit is shared across all your traditional and Roth IRAs.
Roth IRA income limits. Your ability to contribute directly to a Roth IRA phases out in these 2026 income ranges (modified AGI):
- Single or head of household: $153,000 to $168,000
- Married filing jointly: $242,000 to $252,000
- Married filing separately: $0 to $10,000
Traditional IRA deduction limits. Anyone with earned income can contribute to a traditional IRA, but if you or your spouse has a workplace plan, the deduction phases out in 2026 at:
- Single, covered by a workplace plan: $81,000 to $91,000
- Married filing jointly, contributing spouse covered: $129,000 to $149,000
- Not covered, but spouse is: $242,000 to $252,000
- Married filing separately, covered: $0 to $10,000
SIMPLE and SEP plans
These plans are common at small businesses and for the self-employed.
- SIMPLE: $17,000 for 2026, with a $4,000 catch-up at 50+ and $5,250 for ages 60 to 63. Some plans qualify for a higher limit of $18,100.
- SEP: employer contributions are limited to the lesser of 25% of compensation or $72,000 for 2026. If you're self-employed, "compensation" means net earnings from self-employment minus half of your self-employment tax and the SEP contribution itself, so the effective percentage is lower.
If you're choosing a plan for your business, our article on LLC vs S corp elections explains how your business structure affects what counts as compensation.
Health savings accounts
An HSA isn't technically a retirement account, but it can work like one. For 2026, you can contribute $4,400 with self-only high-deductible health plan coverage or $8,750 with family coverage. If you're 55 or older, you can add $1,000.
Contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free too.
Timing and deadlines
- 401(k), 403(b), 457 and SIMPLE deferrals come out of your paycheck, so they generally must be made by December 31, 2026.
- IRA and HSA contributions for 2026 can generally be made up to your tax return due date in April 2027 (without extensions).
- SEP contributions can generally be made up to the due date of the business return, including extensions.
For more ideas before the year closes, see our year-end tax planning checklist.
When to get professional help
The limits are simple, but the details aren't always. It's worth talking with a professional if you have more than one employer plan, if you're self-employed and figuring a SEP contribution, if your income is near a Roth IRA phase-out, or if you're unsure how the new Roth catch-up rule affects you. Our personal tax preparation team can help you plan contributions and report them correctly. You can book an appointment whenever it suits you.
This article is general information, not tax advice for your situation.
Sources
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (IR-2025-111)
- IRS: Notice 2025-67, 2026 amounts relating to retirement plans and IRAs
- IRS: Final regulations on new Roth catch-up rule (IR-2025-91)
- IRS: SEP contribution limits
- IRS: Simplified Employee Pension plan (SEP)
- IRS: Rev. Proc. 2025-19 (2026 HSA limits)
- IRS: Publication 969, Health Savings Accounts
General information, not tax advice. Tax rules change and depend on your situation. Figures are for tax year 2026 unless noted; confirm current amounts at IRS.gov or talk to a Stellar Tax professional before acting.