What are the 2026 contribution limit and catch-up changes for 401(k) and IRA accounts?
Executive summary
The IRS raised 2026 contribution limits: the elective deferral limit for 401(k), 403(b), most 457 plans and the Thrift Savings Plan increases to $24,500 (from $23,500 in 2025), and the annual IRA limit rises to $7,500 (from $7,000) [1] [2]. Catch‑up rules change: workers 50+ can add higher catch‑ups — a $8,000 catch‑up for 401(k)-type plans in 2026 and a $1,100 IRA catch‑up — while the SECURE 2.0 “super catch‑up” for ages 60–63 of $11,250 remains in place for certain employer plans [3] [4] [5].
1. What changed for 401(k) base limits — the headline number
The headline adjustment for 2026 is a $1,000 increase in the employee elective deferral ceiling for 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan: savers can defer up to $24,500 in 2026, up from $23,500 in 2025, according to the IRS announcement [1] [2].
2. Catch‑up contributions for employer plans — two different rules
Catch‑up contributions for those aged 50+ rise, but the law now creates two relevant figures: the general catch‑up for savers 50+ in employer plans is $8,000 in 2026 (up from $7,500), while a separate SECURE 2.0 provision leaves a special “super catch‑up” of $11,250 for people aged 60–63 who participate in applicable employer plans; that $11,250 figure remains unchanged for 2026 [3] [5].
3. IRA contribution limits and IRA catch‑ups — the household cap
For IRAs, the annual total contribution limit for 2026 rises to $7,500 (this is the combined cap for traditional and Roth IRAs) and the catch‑up for IRA contributors age 50 and over is increased to $1,100, making the maximum for a 50+ IRA contributor $8,600 if combining base and catch‑up [1] [6] [4].
4. Who actually benefits — income thresholds and phase‑outs
Higher nominal limits don’t mean everyone can use them. Roth IRA and deduction eligibility for traditional IRAs remain subject to MAGI phase‑outs, all of which moved higher for 2026: for example, Roth phase‑outs for singles/head‑of‑household rise to $153,000–$168,000 and several employer‑plan related traditional IRA deduction phase‑outs increased as well, per the IRS notice [1] [2].
5. The policy backstory and the SECURE 2.0 effect
Part of the catch‑up complexity stems from SECURE 2.0, which created higher targeted catch‑ups for ages 60–63 in certain employer plans and changed how catch‑ups are treated for higher FICA earners — for some contributors catch‑up deferrals may be treated as Roth (after‑tax) under recent rules — details referenced in reporting on the IRS guidance [3] [7]. This explains why some catch‑up amounts differ by age and plan type [5].
6. Practical examples — what a saver can do in 2026
An under‑50 worker can defer up to $24,500 to a 401(k) in 2026; someone 50+ could add the $8,000 catch‑up to reach $32,500 total in that plan, while an IRA contributor under 50 can put $7,500 into IRAs and a 50+ IRA contributor can add $1,100 for an $8,600 IRA total [1] [3] [6]. Note: combined employee+employer limits (the overall plan contribution caps) and plan specifics can still constrain actual deposit amounts [8].
7. Competing coverage and small discrepancies in reporting
Major outlets and industry groups uniformly cite the IRS notice on the $24,500 401(k) and $7,500 IRA limits [2] [9]. Some stories emphasize a $8,000 401(k) catch‑up for 50+ [10] while others stress the unchanged $11,250 super catch‑up for ages 60–63 [3] [4]; both are true and reflect different statutory provisions and plan applicability [5]. Readers should note coverage sometimes mixes the various catch‑up rules without specifying age or plan qualifiers; the underlying IRS notice is the authoritative source [5].
8. Limitations and what reporting does not say
Available sources do not mention specific plan‑by‑plan administrative limits employers may impose, nor do they provide granular guidance on how the mandatory Roth treatment for certain catch‑up contributions will be implemented for individual employers — readers should consult their plan administrator or a tax adviser for plan‑specific treatment (not found in current reporting). The IRS notice remains the definitive legal text for these amounts [5].
9. Bottom line for savers
2026 gives most retirement savers more nominal room: higher base 401(k) and IRA limits and larger catch‑ups for older savers. But the gains vary by age, plan type and income phase‑outs, and SECURE 2.0’s layered rules mean savers must check plan rules and tax treatment before assuming they can or should capture every dollar [1] [3] [4].