IRS Raises Retirement Contribution Limits for 2026

More Room to Save

If you are in the years before retirement and making decisions about how much to put away, 2026 brings a concrete improvement. The IRS has raised the contribution limits for 401(k), 403(b), and most 457 plans, as well as for individual retirement accounts, giving workers at every stage more room to shelter income from taxes while building retirement savings. For workers 49 and younger, the base 401(k) contribution limit is now $24,500 - up $1,000 from 2025. For workers 50 and older, the standard catch-up contribution has increased to $8,000, for a combined maximum of $32,500.

The IRA limits have also moved. According to AARP, the standard contribution cap for traditional and Roth IRAs is $7,500 for 2026, up from $7,000 in 2025. The catch-up contribution for savers 50 and older increased from $1,000 to $1,100, allowing a combined IRA maximum of $8,600. These adjustments are indexed to inflation, meaning they reflect the rising cost of living and are intended to keep the real value of savings opportunities roughly stable over time.

The Super Catch-Up for Ages 60 to 63

The most significant provision for savers in or near their early 60s is the SECURE 2.0 Act’s enhanced catch-up contribution, sometimes called the super catch-up, which applies specifically to workers ages 60, 61, 62, and 63. That group can contribute an additional $11,250 on top of the $24,500 base limit, bringing total 401(k) contributions for that age range to $35,750. This figure is unchanged from 2025, but it remains the highest contribution ceiling available to any age group. Once a worker turns 64, the contribution reverts to the standard catch-up limit of $8,000.

This provision was created specifically to give workers in the final stretch before retirement an opportunity to compress additional savings into a shorter window. Someone entering this age range with a savings gap can use the super catch-up to meaningfully close it in a way that was not available under previous contribution rules. The provision applies to 401(k)s, 403(b)s, and most 457 plans, along with the federal Thrift Savings Plan.

How IRA Limits Work for Older Savers

The IRA catch-up increase - from $1,000 to $1,100 - is smaller in dollar terms than the 401(k) changes but carries its own significance. For savers who do not have access to an employer-sponsored plan, or who use an IRA as a supplemental savings vehicle alongside a workplace plan, the combined $8,600 maximum for 2026 represents the highest IRA limit available to date. AARP notes that a person who turns 50 this year and begins contributing at the catch-up level could accumulate up to $129,000 in an IRA alone by age 65, not accounting for investment returns or future limit adjustments.

Traditional IRA contributions may be fully or partially deductible depending on income and whether the contributor also has access to a workplace retirement plan. Roth IRA contributions are made with after-tax dollars and are subject to income limits. For 2026, the income thresholds for Roth eligibility have also been adjusted upward to reflect inflation. A financial advisor can help clarify which account type and contribution strategy makes the most sense for a specific tax situation.

Deadlines and Timing That Matter

For 401(k) and similar workplace plans, contributions must be made through payroll deduction by December 31, 2026. IRA contributions have a longer runway - they can be made up to the tax filing deadline in April 2027 and still count for the 2026 tax year. That means readers who have not yet maxed out their IRA for 2025 still have until April 15, 2026, to do so, according to AARP. Acting before that deadline and then immediately beginning 2026 contributions is one of the more efficient ways to take full advantage of both years’ limits.

Most participants do not max out their retirement accounts. Vanguard’s 2025 How America Saves report found that only 14 percent of participants contributed the maximum to their 401(k) in 2024. For those who can increase contributions even modestly - particularly those in the catch-up window - the compounding effect over the remaining years before retirement is meaningful. The 2026 limit increases provide an additional ceiling for those already contributing near their maximum, and a clearer target for those working toward it.

References: 401(k) Contribution Limits 2026 | Biggest Changes to Medicare, Social Security, and More in 2026