As you approach retirement, it’s important to continue saving enough to build a nest egg that supports the lifestyle you want without worrying about spending your savings too quickly. For many, this means contributing the maximum allowable amount to workplace retirement plans and individual retirement accounts each year.
If you plan to max out your tax-advantaged retirement accounts, now is a good time to review those limits, because they are increasing in 2026. By adjusting your contributions, you can take advantage of the tax benefits and extra savings growth.
Maximum Contribution Limit Increases for 2026
Across the board, the amount you can contribute to workplace plans and individual retirement accounts is going up. This can help you get the most benefit possible from tax-advantaged savings accounts to save even more. If you’re still working toward retirement, or feel like you’re behind, these increases give you flexibility to make more progress toward your retirement savings goals.
Traditional & Roth IRAs
Individual retirement accounts, or IRAs, allow you to save toward retirement on your own, without the need for an employer plan. In 2025, the most you can contribute to a traditional or Roth IRA is $7,000. People who are at least 50 can make an additional “catch-up” contribution of $1,000, for a total of $8,000.
This limit applies to your total contributions across all IRAs. In other words, you can’t contribute $7,000 to a traditional IRA and another $7,000 to a Roth IRA. You can, however, split your contributions any way you like as long as the total across all IRAs doesn’t exceed the limit. For example, you could contribute $4,000 to a traditional IRA and $3,000 to a Roth IRA.
For 2026, the limit increases to $7,500 per individual younger than 50. The catch-up contribution for those 50 or older also increases for 2026, to $1,100.
401(k), 403(b), and 457 plans
While IRAs are individual accounts, other types of retirement accounts are only available through a workplace plan and require an employer who offers one. The most common types include:
- 401(k): Typically offered by for-profit corporations
- 403(b): Common among educational institutions and tax-exempt organizations
- 457(b): Governmental entities
While there are differences among these plan types, they all share the same basic contribution limits, which are increasing in 2026. To understand these increases, you need to first understand the different types of contributions to these plans. There are typically two components, employee contributions and employer contributions.
Employee contributions
When people talk about employee contributions to workplace retirement plans, they are typically referring to salary deferrals. This is the amount an employee can have withheld from their paycheck and placed inside their traditional or designated Roth account within the plan. In 2025, the maximum salary deferral limit is $23,500 for those younger than 50. For people who are 50 or older, an additional catch-up contribution of $7,500 brings the total to $31,000. These limits increase to $24,500 and $8,000 in 2026.
Beyond the salary deferral limit, you may also make after-tax contributions. These contributions are neither traditional nor Roth contributions. Instead, they are contributions that do not provide a tax deduction and whose earnings grow tax-deferred. There’s no explicit limit on after-tax contributions. Instead, they are limited in the same way employer contributions are.
Employer contributions
There is no direct limit on employer contributions into workplace plans. However, they are restricted by the annual additions limit. This is the maximum amount of contributions that can be added to a plan in a given year from all sources, employer and employee. In 2025, the annual additions limit is $70,000. This increases to $72,000 for 2026.
So, for example, if you contribute $20,000 in 2025, the most your employer would be able to contribute is $50,000. Of course, most employer matching formulas aren’t this generous.
Catch-Up Contributions for High Earners
As part of the SECURE Act 2.0, an additional consideration will affect catch-up contributions for high-income earners beginning in 2026. For these people, any catch-up contributions must be made into a Roth account. “High earner” is defined by anyone who has Social Security (FICA) wages (box 3 on your W-2) of $150,000 or more in the preceding year.
Catch-Up Contributions for Those Age 60–63
The SECURE Act 2.0 also created a “super catch-up” opportunity for anyone who is 60–63 years old. Instead of the standard catch-up provision for those who are at least 50, people in this age range can contribute an additional $11,250 for 2025. It will remain at this level for 2026.
Impact of the 2026 Contribution Limits
The increased limits in 2026 provide you with the flexibility to add to your savings and get more value from your retirement accounts. Catch-up contributions can help you even more as you approach the last few years leading up to retirement. If you haven’t yet reviewed your plans recently, now is a good time to check on your progress and see if you need to make any contribution changes.
Frequently Asked Questions
If I’m over 50, can I make both the standard catch-up and super catch-up contribution?
No, you cannot make the super catch-up contribution on top of the regular catch-up. The most you can contribute between salary deferrals and catch-up contributions in 2026 is $24,500 + $11,250 for a total of $35,750.
Should I maximize my retirement plan contributions?
Maximizing your contributions provides you with the best chance of having a secure retirement, but it isn’t necessary for everyone. The amount you need to save depends on your personal situation and goals.
Do retirement plan contribution limits increase every year?
No, retirement plan contribution limits do not automatically increase every year. The IRS announces new limits when they are implemented.
Is the Roth catch-up rule for high earners effective for 2025?
No, the Roth catch-up rule for high earners does not apply until 2026.
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