What are the 401(k) and IRA limits for 2026?
The IRS announced the 2026 figures in news release IR-2025-111 and Notice 2025-67:
| Limit | 2026 | 2025 |
|---|---|---|
| 401(k), 403(b), governmental 457 and TSP elective deferrals | $24,500 | $23,500 |
| Catch-up, age 50 and over | $8,000 | $7,500 |
| Higher catch-up, ages 60 to 63 | $11,250 | $11,250 |
| IRA contributions | $7,500 | $7,000 |
| IRA catch-up, age 50 and over | $1,100 | $1,000 |
| Total from you and your employer (annual additions) | $72,000 | $70,000 |
| SIMPLE retirement account deferrals | $17,000 | $16,500 |
The 2027 limits are not out yet: as of October 18, 2026, the IRS has not announced them. The 2026 figures came out on November 13, 2025, so plan with this table until the new release.
Catch-up at 50 and the higher catch-up at 60 to 63
Catch-up contributions are extra deferrals for older workers, if your plan allows them. You qualify for 2026 if you are 50 or older at the end of the calendar year. You do not need to be behind on your savings.
- Ages 50 to 59, and 64 or older: $24,500 + $8,000 = $32,500.
- Ages 60, 61, 62 or 63 in 2026: $24,500 + $11,250 = $35,750. This higher catch-up comes from the SECURE 2.0 Act, and it stops the year you turn 64.
- IRA, age 50 or over: $7,500 + $1,100 = $8,600. There is no higher IRA catch-up at 60 to 63.
One more rule from Notice 2025-67: if your 2025 wages were above $150,000, the Roth catch-up wage threshold, your 2026 catch-up contributions must be made as Roth contributions, after tax. Our 401k calculator applies the age-based caps when it projects your balance.
What counts toward the $24,500 and what does not
The IRS rules on 401(k) limits separate your money from your employer’s:
- Your deferrals, traditional and Roth together, count toward the $24,500. If you have more than one job, you add up your deferrals to all plans.
- Your employer’s match and other employer contributions do not count toward the $24,500. They count toward the total limit on annual additions: the lesser of 100% of your pay or $72,000 per employer, or $80,000 with the age-50 catch-up and up to $83,250 at ages 60 to 63.
- Pay above $360,000 is not counted when the plan figures contributions for 2026.
Your plan can set a lower limit, and highly paid employees may be capped to pass nondiscrimination tests. Your plan administrator has your exact rules.
IRA income ranges for 2026
Income can limit the deduction for a traditional IRA and the right to put money in a Roth IRA. These are the 2026 phase-out ranges of modified AGI:
| Case | Phase-out range |
|---|---|
| Traditional IRA deduction, single, covered by a workplace plan | $81,000 to $91,000 |
| Traditional IRA deduction, joint, contributor covered by a workplace plan | $129,000 to $149,000 |
| Traditional IRA deduction, contributor not covered, spouse covered | $242,000 to $252,000 |
| Roth IRA contribution, single or head of household | $153,000 to $168,000 |
| Roth IRA contribution, married filing jointly | $242,000 to $252,000 |
If neither you nor your spouse is covered by a retirement plan at work, the traditional IRA deduction has no income limit. Married filing separately, the ranges stay at $0 to $10,000.
What maxing out your 401(k) does to your paycheck
A traditional 401(k) costs you less than it saves, because the money goes in before federal income tax. On a $100,000 salary paid every two weeks, single filer, our paycheck calculator shows:
- No 401(k): $3,045.38 of take-home pay per paycheck.
- $942.31 per paycheck to the 401(k), which is $24,500 a year: $2,310.38 of take-home pay.
You save $942.31 but your paycheck drops by $735.00, because federal withholding falls by $207.31. Social Security and Medicare do not drop: 401(k) deferrals are still subject to both. To see what the savings could grow to, try the compound interest calculator.
What happens if you contribute too much
If your deferrals to all plans pass the limit, you have an excess deferral. Tell your plan administrator before April 15 of the following year, 2027 for the 2026 limit, so the excess and its earnings are paid back to you. If you take it out in time, it is taxed in 2026 and has no 10% early distribution tax. If you leave it in the plan, it is taxed twice: once in 2026 and again when you withdraw it.
See what maxing out a 401(k) does to a real paycheck on a $100,000 salary after taxes.
Official sources
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 · IR-2025-111: 2026 limits and IRA income ranges
- IRS Notice 2025-67: 2026 limitations for retirement plans · annual additions $72,000; Roth catch-up wage threshold $150,000
- IRS: Retirement topics, 401(k) and profit-sharing plan contribution limits · catch-up eligibility, overall limit, compensation limit, excess deferrals