2026 IRS Retirement Contribution Limits: Full Breakdown & What They Mean for You
The IRS has released the official 2026 retirement contribution limits, and nearly every major retirement plan is seeing an increase. These adjustments—announced in Notice 2025-67—reflect annual cost-of-living changes and may impact how much you're able to save (and deduct) next year. Below is a complete summary of what’s changing and what to consider as you plan for 2026.
401(k), 403(b), 457, and TSP Contribution Limits for 2026
Employees participating in workplace retirement plans will see an increase in their standard contribution limit for 2026:
Employee elective deferral limit:
$24,500 (up from $23,500 in 2025)Catch-up contribution for age 50+:
$8,000 (up from $7,500)Special catch-up for ages 60–63:
$11,250 (unchanged from 2025)
This means someone age 50+ can contribute up to $32,500, and those age 60–63 may be able to contribute even more depending on their plan specifics.
Defined Contribution Plan Limits (Employer + Employee)
For 2026, the total amount that can go into defined contribution plans—such as Solo 401(k)s and employer-sponsored retirement plans—has increased to:
$72,000 (up from $70,000 in 2025)
This includes employee contributions, employer matching, profit sharing, and any other additions to the account.
Traditional & Roth IRA Limits
IRA contribution limits are also rising next year:
IRA contribution limit:
$7,500 (up from $7,000)IRA catch-up for age 50+:
$1,100 (up from $1,000)
IRA Deduction Phase-Out Ranges for 2026
These ranges determine whether your traditional IRA contributions are deductible:
Single, active participant: $81,000–$91,000
Married filing jointly, contributing spouse covered: $129,000–$149,000
Married filing jointly, contributor NOT covered but spouse is: $242,000–$252,000
Married filing separately: $0–$10,000 (unchanged)
Roth IRA Income Phase-Out Range for 2026
To contribute to a Roth IRA, your income must fall below these thresholds:
Single/Head of household: $153,000–$168,000
Married filing jointly: $242,000–$252,000
Married filing separately: $0–$10,000 (unchanged)
SIMPLE IRA & SIMPLE 401(k) Limits
Small businesses and self-employed individuals using SIMPLE plans will see increased limits in 2026:
SIMPLE employee contribution limit:
$17,000 (up from $16,500)Enhanced SIMPLE limit (certain plans):
$18,100 (up from $17,600)Catch-up age 50+:
$4,000 (up from $3,500)Special catch-up age 60–63:
$5,250 (unchanged)Additional employer nonelective contribution limit:
$5,300 (up from $5,100)
Defined Benefit (Pension) Plan Limits
For those participating in or managing pension plans:
Maximum annual benefit:
$290,000 (up from $280,000)
The compensation limit used in these calculations also increases to $360,000.
Starter 401(k) and Starter 403(b) Limits
For newer plans designed for small employers:
Employee limit: $6,000
Catch-up (age 50+): $1,100
Additional Key Retirement-Related Limit Changes
These lesser-known items may apply in more specialized planning situations:
HCE (Highly Compensated Employee) threshold:
$160,000 (unchanged)Key employee threshold (top-heavy plans):
$235,000 (up from $230,000)ESOP distribution limits:
$1,455,000 (with $290,000 used for 5-year extension calculation)Pension-linked emergency savings accounts:
$2,600 (up from $2,500)Qualified Charitable Distribution (QCD) annual limit:
$111,000 (up from $108,000)
with a $55,000 limit for QCDs to split-interest entitiesAGI limits for Saver’s Credit:
Married filing jointly: up to $80,500
Head of household: up to $60,375
Single/MFS: up to $40,250
What These Increases Mean for You
These expanded limits provide several opportunities:
✔ More tax-deferred or tax-free saving space
Particularly valuable for high-income earners or those behind on retirement savings.
✔ Greater flexibility for ages 50+ and 60–63
Catch-up contributions continue to be an important tool in pre-retirement planning.
✔ Easier eligibility for IRA deductions and Roth contributions
The higher phase-out ranges mean more taxpayers may qualify.
✔ More room for employer contributions
Especially meaningful for business owners designing Solo 401(k), SEP, or SIMPLE strategies.
Want help maximizing the 2026 limits?
If you'd like a personalized strategy around these new contribution limits—whether for tax planning, retirement income projections, or small-business retirement plan design—I’m here to help.
You can schedule a meeting here: https://www.eightpeakswealth.com/schedule/introductory
