If you haven't reviewed your retirement account contributions lately, now is a good time. The IRS increased retirement contribution limits for 2026, and with roughly four months left in the year, there's still a meaningful opportunity to close any gap before December 31.
Whether you contribute to a 401(k), an IRA, or both, understanding the updated limits — and a notable change brought by the SECURE 2.0 Act that took effect this year — can help you make more informed decisions as you plan for the months ahead.
Why Contribution Limits Matter
Retirement accounts like 401(k)s and IRAs offer valuable tax advantages — either reducing your taxable income today (traditional accounts) or allowing your savings to grow and be withdrawn tax-free in retirement (Roth accounts). The IRS sets annual limits on how much you can contribute to these accounts each year.
These limits are adjusted periodically for inflation. When they increase, as they have for 2026, you have an opportunity to shelter more of your income from taxes and build your retirement savings faster — depending on your circumstances.
The limits below are based on IRS-published figures for the 2026 tax year.
2026 401(k) Contribution Limits
For employees participating in a 401(k), 403(b), most 457 plans, or the federal Thrift Savings Plan, the employee contribution limit for 2026 is $24,500 — an increase from $23,500 in 2025.
Catch-Up Contributions for Age 50 and Older
If you are age 50 or older by the end of the year, you may be eligible to make additional catch-up contributions of $8,000, bringing your total potential 401(k) deferral to $32,500 for 2026.
A Higher Catch-Up Limit for Ages 60–63 (SECURE 2.0)
One of the more significant changes introduced by the SECURE 2.0 Act is a higher catch-up contribution limit specifically for employees who turn ages 60, 61, 62, or 63 during the calendar year. In 2026, this "super catch-up" amount is $11,250 — rather than the standard $8,000 — bringing the total potential deferral to $35,750 for eligible participants.
This provision is designed to give workers in the final stretch of their careers an additional opportunity to accelerate their retirement savings. Whether this applies to you and how your plan handles it may vary, so it's worth confirming with your employer's HR or benefits department.
2026 IRA Contribution Limits
Individual Retirement Accounts — both traditional IRAs and Roth IRAs — have their own separate contribution limits from your workplace plan. For 2026, the IRA contribution limit is:
- $7,500 for individuals under age 50
- $8,600 for individuals age 50 or older (which includes a $1,100 catch-up contribution)
An important point worth remembering: you can contribute to both a 401(k) and an IRA in the same year — they are subject to separate limits. Contributing to a workplace plan does not prevent you from also funding an IRA, though your ability to deduct traditional IRA contributions or contribute to a Roth IRA may depend on your income.
Roth IRA Income Phase-Out Ranges for 2026
Not everyone is eligible to contribute directly to a Roth IRA. The IRS limits Roth IRA contributions based on your modified adjusted gross income (MAGI). For 2026, those ranges are:
- Single filers and heads of household: Phase-out begins at $153,000 and is fully phased out at $168,000
- Married filing jointly: Phase-out begins at $242,000 and is fully phased out at $252,000
- Married filing separately: Phase-out remains between $0 and $10,000
If your income falls within or above these ranges, you may be limited in or ineligible for direct Roth IRA contributions. A financial professional can help you evaluate whether alternative strategies may be appropriate for your situation.
Traditional IRA Deductibility Phase-Outs
If you or your spouse participates in a workplace retirement plan, your ability to deduct traditional IRA contributions may be limited based on income. The 2026 deduction phase-out ranges are:
- Single filers covered by a workplace plan: $81,000 – $91,000
- Married filing jointly (contributing spouse covered by workplace plan): $129,000 – $149,000
- Married filing jointly (contributing spouse NOT covered, but other spouse IS covered): $242,000 – $252,000
If neither you nor your spouse is covered by a workplace retirement plan, you can generally deduct the full amount of your traditional IRA contribution regardless of income.
A Key SECURE 2.0 Change Now in Effect: Roth Catch-Up Requirement
Starting January 1, 2026, a new SECURE 2.0 rule affects high-earning employees who make catch-up contributions to a workplace retirement plan. If your FICA wages from the plan sponsor exceeded $150,000 in the prior year, your catch-up contributions must now be made on a Roth (after-tax) basis — rather than on a pre-tax basis.
This is a meaningful shift for some workers. While Roth contributions don't reduce your taxable income today, the money grows tax-free and qualified withdrawals in retirement are not subject to income tax. If your wages are below the $150,000 threshold, you retain the flexibility to choose between pre-tax or Roth catch-up contributions, depending on your plan's options.
If you're unsure whether this requirement applies to you, checking with your HR or benefits administrator — and potentially a financial or tax professional — can provide clarity.
Year-End Planning Considerations
With August now here, there are still several months to make a difference in your 2026 retirement contributions. A few things worth thinking through:
- Review your current contribution rate. Are you on pace to reach your intended contribution for the year? If not, increasing your payroll deferral — even by a small percentage — can help close the gap.
- Check whether you're leaving employer match on the table. If your employer offers a matching contribution, contributing at least enough to capture the full match is often worth considering. Match structures vary by employer, so reviewing your plan documents or speaking with HR can clarify what's available.
- Consider whether catch-up contributions apply to you. If you are 50 or older — or if you will turn 60, 61, 62, or 63 this year — you may have access to higher contribution limits worth exploring.
- Think about IRA timing. While IRA contributions for the 2026 tax year can be made up until the tax filing deadline in spring 2027, funding your IRA earlier in the year allows more time for potential tax-deferred or tax-free growth.
- Revisit your overall retirement plan picture. Contribution limits are just one piece. How your savings are invested, how different accounts are coordinated, and how your retirement accounts fit into your broader financial picture are all worth periodically reviewing.
The Saver's Credit: An Often-Overlooked Benefit
Lower- and moderate-income workers who contribute to a retirement account may be eligible for the Saver's Credit — a tax credit (not just a deduction) that directly reduces the amount of taxes owed. For 2026, the income limit for the Saver's Credit is:
- Married filing jointly: Up to $80,500
- Head of household: Up to $60,375
- Single or married filing separately: Up to $40,250
If you fall within these income ranges and are contributing to a retirement account, it may be worth discussing the Saver's Credit with a tax professional when you file.
Putting It Together
Contribution limits aren't the most exciting topic in personal finance, but they represent a concrete, IRS-defined opportunity to make the most of tax-advantaged retirement savings each year. Understanding what's available to you — and reviewing your current savings pace while there's still time — can be a practical and useful step before the year closes out.
How much you contribute, which accounts make sense for your situation, and how all of this fits into a broader financial plan will depend on your income, goals, tax picture, and circumstances. These are the kinds of questions a financial professional can help you think through.
Financial decisions are rarely one-size-fits-all. If you'd like to talk through how these considerations fit into your broader financial goals, schedule a consultation with Eden Advisory Services.
This article is for general educational purposes and should not be considered individualized investment, tax, or legal advice. Contribution limit figures are based on IRS-published information for the 2026 tax year. Financial decisions should be evaluated based on your individual circumstances and, when appropriate, with qualified financial, tax, or legal professionals.
