Published October 2, 2026 · Updated October 3, 2026

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2026 Retirement Contribution Limits: 401(k), IRA, 403(b), 457, SEP and SIMPLE Limits

Direct answer: For 2026, the IRS increased several major U.S. retirement-plan contribution limits. The employee elective-deferral limit for most 401(k), 403(b), and governmental 457 plans is $24,500. The IRA contribution limit is $7,500 ($8,600 with catch-up for those age 50 or older, including the $1,100 indexed catch-up). The general age-50 catch-up for most 401(k), 403(b), and governmental 457 plans is $8,000. A higher catch-up of $11,250 applies to eligible participants ages 60 through 63 under SECURE 2.0 rules.

2026 limits at a glance

Key 2026 IRS retirement contribution limits
Limit	2026 Amount	What it generally applies to
401(k)/403(b)/governmental 457 elective deferral	$24,500	Employee salary deferrals
General catch-up (age 50+)	$8,000	Eligible participants in most 401(k), 403(b), governmental 457 plans
Higher catch-up (ages 60-63)	$11,250	Eligible participants ages 60, 61, 62, or 63 in covered plans
IRA contribution limit	$7,500	Combined traditional + Roth IRA annual contribution, subject to compensation and other rules
IRA catch-up (age 50+)	$1,100	Additional eligible IRA contribution for those age 50 or older
Defined-contribution annual additions limit	$72,000	Combined contributions subject to Internal Revenue Code Section 415(c), excluding qualifying catch-up contributions
SEP maximum contribution	$72,000	Subject to SEP percentage and compensation rules
SIMPLE employee salary-reduction limit	$17,000	SIMPLE plan employee contributions
SIMPLE general catch-up (age 50+)	$4,000	Eligible age-50 or older SIMPLE participants
SIMPLE higher catch-up (ages 60-63)	$5,250	Eligible participants ages 60-63 in SIMPLE plans

Source: IRS: 401(k) limit increases to $24,500 for 2026. Data version 2026.1. Last verified: October 2026. Verify current-year figures at IRS.gov before making decisions.

What changed from 2025 to 2026

Year-over-year retirement contribution limit changes, 2025 to 2026
Limit	2025	2026	Change
401(k)/403(b)/governmental 457 elective deferral	$23,500	$24,500	+$1,000
General catch-up (age 50+)	$7,500	$8,000	+$500
IRA regular contribution	$7,000	$7,500	+$500
IRA catch-up (age 50+)	$1,000	$1,100	+$100
Defined-contribution annual additions	$70,000	$72,000	+$2,000
SEP maximum contribution	$70,000	$72,000	+$2,000
SIMPLE employee salary-reduction	$16,500	$17,000	+$500

Source: IRS: COLA increases for dollar limitations on benefits and contributions. IRS Notice 2025-67 via IRS Internal Revenue Bulletin 2025-49.

Why these limits change

Federal tax law sets dollar limits on tax-advantaged retirement arrangements and requires many of those limits to be adjusted for cost-of-living changes. The IRS publishes annual retirement-related cost-of-living adjustments (COLA). For 2026, the IRS announced updated figures in IRS Notice 2025-67, published in Internal Revenue Bulletin 2025-49.

That annual process matters because a limit that was correct last year can be wrong this year even when the plan name and tax rule look unchanged.

These limits are not interchangeable. Some apply only to employee salary deferrals, some apply to combined employer and employee contributions, and some depend on age, plan type, compensation, or specific tax rules. The practical skill is identifying exactly which limit applies to the contribution being made.

401(k) contribution limit for 2026

The basic employee elective-deferral limit for a 401(k) plan is $24,500 in 2026, up from $23,500 in 2025.

This is the amount an employee can generally defer from salary into covered plans, subject to plan terms and aggregation rules. A common error is treating $24,500 as the maximum amount that can enter the account from all sources. It is not.

A 401(k) can receive several types of contributions, including employee elective deferrals, employer matching contributions, employer nonelective contributions, and certain allocations. A separate annual-additions limit applies to the combined amount subject to Section 415(c). For 2026, that defined-contribution limit is $72,000, before applicable catch-up contributions.

401(k) catch-up contributions for 2026

For 2026, the general catch-up contribution limit for eligible participants age 50 or older in most 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan is $8,000.

An eligible participant subject to the general catch-up rule could potentially defer $24,500 regular elective deferral plus $8,000 catch-up, for a total of $32,500 in employee deferrals, assuming the plan permits the contribution and no other rule reduces the amount.

SECURE 2.0 introduced a higher catch-up limit for participants who reach certain ages. For 2026, eligible participants who are age 60, 61, 62, or 63 can have a higher catch-up limit of $11,250 in covered plans, instead of the general $8,000. For a participant to whom the higher catch-up applies, the maximum employee deferral could therefore be $24,500 + $11,250 = $35,750.

Roth catch-up requirement beginning in 2026

Beginning in 2026, participants in plans with Roth features offering catch-up contributions generally must make catch-up contributions on a Roth basis if prior-year wages with the plan sponsor exceeded the applicable threshold, which the IRS identified for 2026 as $150,000.

This is a rule about the tax character of catch-up contributions, not a limit on how much someone may contribute. A reader who understands the dollar amounts should still confirm whether the catch-up must be designated Roth.

IRA contribution limit for 2026

For 2026, the total contribution limit across a person's traditional and Roth IRAs is generally $7,500, or taxable compensation if that is lower. The limit is combined across traditional and Roth IRAs, not $7,500 for each account separately.

For eligible individuals age 50 or older, the IRA catch-up contribution is $1,100 in 2026, producing a combined regular-plus-catch-up IRA contribution amount of $8,600. The catch-up amount is now subject to cost-of-living adjustment under SECURE 2.0, which is why it increased from the prior $1,000 amount.

Note that IRA contribution eligibility, traditional IRA deductibility, and Roth IRA eligibility are three separate questions. The $7,500 regular contribution limit tells you the maximum annual contribution. Whether a traditional IRA contribution is deductible depends on modified adjusted gross income, filing status, and whether the individual or spouse is covered by a workplace plan. Roth IRA eligibility can also be reduced at higher income levels, with phase-out ranges that vary by filing status.

403(b) contribution limits for 2026

The standard elective salary-deferral limit for a 403(b) plan is $24,500 in 2026, the same as the 401(k) limit. Eligible participants age 50 or older can generally make an $8,000 catch-up contribution, and the higher ages-60-through-63 catch-up can apply where the rules are satisfied.

403(b) plans also have a special potential catch-up rule for certain employees with at least 15 years of service with an eligible employer. That provision has its own conditions and calculation separate from the general age-50 catch-up.

Governmental 457(b) limits for 2026

The basic elective-deferral limit for governmental 457 plans is also $24,500 in 2026. Eligible participants can be subject to catch-up provisions, but 457 plans can also have a special catch-up rule near normal retirement age that operates differently from the general age-50 catch-up. Check the plan document for available provisions.

SEP contribution limit for 2026

For 2026, employer contributions to a SEP-IRA generally cannot exceed the lesser of 25% of the employee's compensation or $72,000. Self-employed individuals use special calculation rules, so the effective contribution percentage differs from a straightforward 25% of net self-employment income.

SIMPLE IRA contribution limits for 2026

For 2026, the SIMPLE plan employee salary-reduction contribution limit is $17,000. Eligible participants age 50 or older can have a general catch-up amount of $4,000, and participants ages 60 through 63 can have a higher catch-up amount of $5,250.

SIMPLE plans also include employer contribution requirements, generally through matching or nonelective contributions, which are separate from the employee salary-reduction limit.

The defined-contribution annual additions limit

For 2026, the defined-contribution annual additions limit under Section 415(c) is $72,000. This broader limit generally applies to the combination of specified employee and employer contributions. Qualifying catch-up contributions are treated separately from this base limit.

The $72,000 figure is a legal ceiling within a larger rule set, not a guaranteed available contribution amount for every participant. Actual contributions depend on employee deferrals, employer match, nonelective contributions, plan design, compensation, after-tax contribution availability, aggregation rules, and catch-up eligibility.

Common mistakes to avoid

Treating the 401(k) employee limit as the total account limit

The $24,500 employee elective-deferral limit is not the same as the Section 415(c) annual additions limit of $72,000. Employer matching and nonelective contributions are separate contribution sources that count toward the broader limit.

Assuming IRA limits apply separately to traditional and Roth accounts

The $7,500 IRA contribution limit (or $8,600 with catch-up) is a combined limit across all your IRAs for the year. If you contribute $5,000 to a traditional IRA, you may contribute no more than $2,500 to a Roth IRA in the same tax year under the basic limit.

Ignoring the age-band distinction in catch-up contributions

The 2026 catch-up rules include three amounts: the general age-50 catch-up ($8,000 for 401(k)/403(b)/457), the higher ages-60-to-63 catch-up ($11,250), and IRA catch-up ($1,100 for age 50+). Each applies under different eligibility conditions.

Confusing contribution eligibility with tax deductibility or Roth eligibility

A traditional IRA contribution can be permitted even when the deduction is limited or unavailable. And the IRA contribution dollar cap is separate from the Roth IRA income phase-out. These are three distinct rules that require separate evaluation.

Using last year's figures

Retirement limits are one of the clearest examples of financial facts that require a tax-year label. The IRS adjusts most limits annually. A limit that was correct for 2025 may not be correct for 2026.

Frequently asked questions

What is the 401(k) contribution limit for 2026?

The employee elective-deferral limit for most 401(k), 403(b), and governmental 457 plans is $24,500 for 2026. Eligible participants age 50 or older can make an additional general catch-up contribution of $8,000, for a total of $32,500. A higher catch-up of $11,250 applies to eligible participants ages 60 through 63.

What is the IRA contribution limit for 2026?

The IRA contribution limit for 2026 is $7,500. This combined limit applies to the total of all your traditional and Roth IRAs together, not separately per account. Eligible individuals age 50 or older can contribute an additional $1,100 catch-up, for a total of $8,600.

What changed in retirement contribution limits from 2025 to 2026?

Several limits increased for 2026. The 401(k)/403(b)/governmental 457 elective-deferral limit rose from $23,500 to $24,500. The general age-50 catch-up increased from $7,500 to $8,000. The IRA limit went from $7,000 to $7,500. The IRA catch-up increased from $1,000 to $1,100. The defined-contribution annual additions limit rose from $70,000 to $72,000, as did the SEP maximum. The SIMPLE employee limit increased from $16,500 to $17,000.

References

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