The IRS has released the 2026 retirement plan contribution limits, raising how much workers can save in 401(k)s, IRAs, and other tax-advantaged accounts next year. The increases reflect annual cost-of-living adjustments and come alongside new rules requiring some older, higher-earning employees to make their catch-up contributions on a Roth basis.
2026 Retirement Plan Contribution Limits: What’s Changing
For 2026, the IRS is raising the cap on how much employees can contribute to workplace retirement plans, such as 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan. The employee elective deferral limit will increase by $1,000 to $24,500, up from $23,500 in 2025.
The limit on annual contributions to individual retirement accounts (IRAs) is also rising, from $7,000 to $7,500. For the first time, the IRA catch-up contribution for individuals aged 50 and older will be indexed and will increase from $1,000 to $1,100.
Workers age 50 and older who participate in most 401(k), 403(b), governmental 457 plans, or the Thrift Savings Plan will see their catch-up contribution limit increase from $7,500 to $8,000, allowing a total potential deferral of $32,500 in 2026. A “super” catch-up amount for those who turn 60, 61, 62, or 63 during the year remains at $11,250 under SECURE 2.0.
Income thresholds for deducting Traditional IRA contributions and qualifying for Roth IRA contributions are also increasing, modestly expanding eligibility for some middle- and upper-middle-income households.
2026 Retirement Plan Limits at a Glance
| Contribution Type | 2025 Limit | 2026 Limit | Notes |
|---|---|---|---|
| 401(k)/403(b)/gov. 457/TSP elective deferral | $23,500 | $24,500 | Employee salary deferrals |
| Catch-Up (Age 50+) | $7,500 | $8,000 | Total potential deferral $32,500 |
| Super Catch-Up (Age 60–63) | $11,250 | $11,250 | No change for 2026 |
| Traditional/Roth IRA | $7,000 | $7,500 | Individual annual cap |
| IRA Catch-Up (50+) | $1,000 | $1,100 | Now indexed for inflation |
Roth-Only Catch-Up Requirement for High Earners
Separate from the dollar increases, a key rule change under the SECURE 2.0 Act takes effect in 2026 and has major implications for plan administration. Starting that year, employees who are age 50 or older and whose wages from an employer exceeded $150,000 in 2025 must make their catch-up contributions to that employer’s plan on a Roth (after-tax) basis.
Standard elective deferrals can still be made pre-tax, Roth, or a mix of both, depending on plan design. But for higher-earning workers in this age group, the additional catch-up amounts can no longer be pre-tax starting in 2026.
The IRS has confirmed that the Roth catch-up wage threshold used to determine who is subject to this rule is increasing from $145,000 to $150,000, based on 2025 wages. That means HR and payroll teams will need to accurately track prior-year wages by employer and ensure systems route catch-up dollars to the Roth source where required.
Plans that don’t currently offer a Roth option for employee deferrals will need to be amended if the sponsor wants to continue offering catch-up contributions to affected employees.
What Employees Should Consider for 2026
Employees reviewing their 2026 savings strategy may want to take several actions:
- Review contribution rates to see if they want to take advantage of the higher 401(k) and IRA limits.
- Plan for catch-up eligibility if they turn 50 during 2026, or revisit how much they’re contributing if they’re already eligible.
- Check whether prior-year income triggers the Roth-only catch-up rule, which changes the tax treatment of contributions.
- Consider increasing contributions earlier in the year, especially if they’re not yet maximizing employer-plan benefits or employer matches.
- Revisit Traditional and Roth IRA strategies, including whether the higher income phase-out ranges open the door to deductible or Roth contributions that weren’t available before.
How the 2026 Limit Increases Affect HR and Payroll Teams
The 2026 increases also carry administrative implications. Systems that handle payroll, benefits, and retirement contributions will need to be updated to reflect the new deferral, catch-up, and IRA limits, as well as the Roth-only catch-up rule tied to the $150,000 wage threshold. That includes validating year-to-date limits, testing contribution-stopping rules, and confirming that Roth sources are properly configured for affected employees.
Plan sponsors should also review plan documents and work with recordkeepers and advisors to confirm:
- Roth contributions (including Roth catch-up) are permitted and set up correctly.
- The plan’s definition of compensation matches how wages are being tracked for the Roth catch-up rule.
- Procedures are in place to identify and correct excess contributions quickly if employees overshoot the new limits.
On the communication side, HR teams can expect questions from employees who are nearing age 50, are in the higher-earning bracket, or are simply trying to understand how the new limits fit into their broader financial plans. Clear, timely messaging—through open enrollment materials, intranet articles, webinars, or Q&A sessions—can help reduce confusion and support better decision-making.
