By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 20, 2026
Quick answer: For 2026 you can contribute up to $24,500 to a 401(k), 403(b), governmental 457, or Thrift Savings Plan, and up to $7,500 to an IRA. Workers 50 and older add a $8,000 401(k) catch-up, and savers ages 60 through 63 get a larger $11,250 catch-up. The IRS announced these figures on November 13, 2025.
Key facts:
- 401(k) / 403(b) / governmental 457 / TSP elective deferral limit: $24,500 for 2026 (up from $23,500)
- Standard catch-up (age 50+): $8,000 (up from $7,500)
- Enhanced catch-up (ages 60–63): $11,250 under SECURE 2.0
- IRA contribution limit: $7,500 (up from $7,000); IRA catch-up (50+): $1,100
- SIMPLE plan limit: $17,000 (up from $16,500)
These limits apply to money you put away for the 2026 tax year. They come from IRS Notice 2025-67, announced November 13, 2025.
How much can you contribute to a 401(k) in 2026?
The 2026 elective deferral limit for a 401(k) is $24,500 — the amount you can choose to defer from your own paychecks. The same $24,500 limit covers 403(b) plans, most governmental 457 plans, and the federal Thrift Savings Plan. That is up $1,000 from the $23,500 limit in 2025.
If you are 50 or older, you can add a catch-up contribution of $8,000 on top of the $24,500, for a total of $32,500. The catch-up rose $500 from the $7,500 allowed in 2025.
One point that trips people up: the $24,500 cap is on your deferrals only. Any matching contribution your employer makes sits on top of that limit and does not count against your $24,500. So a strong match can push the total going into your account well above the elective-deferral figure.
The $24,500 also covers both flavors of 401(k) deferral combined. If your plan offers a Roth 401(k) alongside the traditional pre-tax option, the money you route to each still shares the same $24,500 ceiling — it isn’t $24,500 into the pre-tax side and another $24,500 into the Roth side. The pre-tax version lowers your taxable income now; the Roth version is taxed now but grows tax-free. Which you choose is a separate decision from how much the limit lets you defer.
Here is how the 2026 limits compare with 2025:
| Account | 2025 limit | 2026 limit |
|---|---|---|
| 401(k)/403(b)/457/TSP elective deferral | $23,500 | $24,500 |
| 401(k) catch-up (age 50+) | $7,500 | $8,000 |
| IRA contribution | $7,000 | $7,500 |
| IRA catch-up (age 50+) | $1,000 | $1,100 |
| SIMPLE plan | $16,500 | $17,000 |
How much can you put in an IRA in 2026?
The 2026 IRA contribution limit is $7,500, whether the account is a traditional IRA or a Roth IRA. That is a $500 increase from the $7,000 limit in 2025. If you are 50 or older, the IRA catch-up rises to $1,100 (up from $1,000), for a total of $8,600.
The IRA limit is completely separate from the 401(k) limit. You can fund both in the same year — maxing a workplace 401(k) does not reduce what you can put in an IRA. Whether your traditional IRA contribution is fully tax-deductible can be limited if you or your spouse are covered by a workplace plan, so check that before you claim the deduction. A Roth conversion is a different move entirely and isn’t capped by these limits.
One more thing to keep straight: the $7,500 is a combined ceiling across all your IRAs. If you split money between a traditional IRA and a Roth IRA, the two together can’t exceed $7,500 (or $8,600 with the age-50 catch-up). It isn’t $7,500 into each. Contributing to one uses up room in the other, so decide the split with the whole limit in mind.
What is the new age 60-63 catch-up contribution?
The age 60-63 catch-up is a larger 401(k) catch-up created by SECURE 2.0: for the years you are 60, 61, 62, or 63, your catch-up is $11,250 instead of the standard $8,000. It applies to 401(k), 403(b), governmental 457, and TSP plans.
Worked example: Dave turns 61 in 2026 and wants to save as much as the law allows in his 401(k). His limit is the $24,500 base plus the $11,250 enhanced catch-up:
- Base elective deferral: $24,500
- Enhanced catch-up (ages 60–63): $11,250
- Total Dave can defer in 2026: $35,750
Compare that with his coworker Susan, age 54, who gets the base $24,500 plus the standard $8,000 catch-up = $32,500. Being in the 60-63 window lets Dave shelter $3,250 more than Susan this year. Once Dave reaches 64, his catch-up drops back to the standard amount.
What are the SIMPLE plan limits for 2026?
The 2026 SIMPLE retirement plan contribution limit is $17,000, up from $16,500 in 2025. SIMPLE plans are common at small businesses, and their limits are lower than a 401(k). If your employer offers a SIMPLE IRA rather than a 401(k), $17,000 is your 2026 elective-deferral ceiling before any age-based catch-up.
Because SIMPLE limits run below regular 401(k) limits, business owners who want to sock away more sometimes weigh whether a full 401(k) fits — a decision that also touches how the business is taxed and structured.
What should you do now?
Mid-2026 is a good moment to check that you are on pace, while there are still months of paychecks left to adjust:
- Do the per-paycheck math. Divide your target by the number of pay periods left in 2026. Front-loading now beats scrambling in December.
- Capture the full employer match first. Match is free money and sits on top of your $24,500 — never leave it on the table.
- Use the right catch-up. If you turn 50 — or land in the 60-63 window — in 2026, make sure your payroll election reflects the higher limit.
- Coordinate your accounts. These limits stack with a separate HSA contribution; if you are eligible for all of them, you can shelter far more than any single account allows.
A credentialed tax professional — like an IRS Enrolled Agent — can help you sequence contributions across a 401(k), IRA, and HSA so you capture every dollar of deduction you’re entitled to.
FAQ
When do the 2026 contribution limits take effect? They apply to contributions for the 2026 tax year. The IRS announced them on November 13, 2025 in Notice 2025-67. Contributions you made for 2025 still follow the lower 2025 limits.
Can I contribute to both a 401(k) and an IRA in 2026? Yes. The $24,500 401(k) elective-deferral limit and the $7,500 IRA limit are separate ceilings, and funding one does not reduce the other. Whether your traditional IRA contribution is deductible can be limited if you’re covered by a workplace plan, so confirm that before deducting.
I turn 60 in 2026 — do I get the higher catch-up? Yes. The enhanced $11,250 catch-up applies for each year you are age 60, 61, 62, or 63. So if you reach 60 during 2026, you qualify for that year; once you turn 64, your catch-up reverts to the standard $8,000.
Is the $24,500 limit separate from my employer match? Yes. The $24,500 cap applies only to your own elective deferrals — the money you defer from your paychecks. Employer matching contributions are on top of that and do not count against your $24,500.
Do IRA contributions for 2026 have to be in by December 31? Not necessarily. IRA contributions for a tax year can generally be made up until that year’s tax filing deadline the following spring, unlike 401(k) deferrals, which must come out of your paychecks during the calendar year.
Sources
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS Notice 2025-67 (PDF)
This article is for educational purposes only and is not tax, legal, or financial advice. Tax rules change and individual situations vary — consult a qualified tax professional about your specific circumstances.