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Key Takeaways
- Contribution limits for 401(k)s and IRAs are higher in 2026, allowing many savers to set aside more money for retirement.
- Savers ages 50 and up face new catch-up contribution rules in 2026, including higher limits and Roth requirements for some high earners.
- HSAs have higher contribution limits this year as well, both for self-coverage and family-coverage scenarios.
Making the most of retirement savings requires that investors keep track of annual changes put forward by the IRS. Annual contribution limits for various types of retirement accounts tend to increase each year, allowing savers to keep up with cost-of-living increases due to inflation.
For 2026, retirement savers at a variety of different income levels have new regulations to keep track of, both to ensure that they are getting the most from their retirement accounts and to avoid being penalized for issues like overpayment.
Why This Matters
Higher contribution limits on 401(k)s, IRAs, and HSAs for 2026 mean that savers can set aside more money to help their retirement accounts grow faster this year.
What Changed for Workplace Retirement Plans in 2026
As many retirement savers will have expected, the IRS increased the contribution limits for workplace retirement plans in 2026. Those contributing to a 401(k) are now eligible to save up to $24,500 per year, $1,000 higher than the limit of $23,500 for 2025.
Employees 50 years of age and up can now make a larger catch-up contribution as well. The IRS raised the catch-up contribution for 401(k) plans by $500 to $8,000, which means that eligible employees may set aside a total of $32,500 in new 401(k) contributions in 2026.
The Super Catch-Up Remains the Same
The higher catch-up contribution for employees ages 60-63 remains the same as last year at $11,250 on top of the baseline $24,500 limit.
The IRA Rule Changes That Took Effect This Year
Those saving for retirement outside of employer-sponsored plans also have new IRS rules to navigate. The total contribution across all individual retirement accounts (IRAs) for 2026 is limited to $7,500, up $500 from last year’s maximum. At the same time, the catch-up contribution for IRAs received a modest cost-of-living adjustment and is now capped at $1,100 compared to $1,000 for 2025. Savers ages 50 and up can now contribute up to $8,600 in 2026 toward one or more IRAs.
Roth IRAs also have income-based changes for 2026 tied to a contributor’s modified adjusted gross income (MAGI). The phase-out range rose to $153,000–$168,000 for single filers and heads of household and to $242,000–$252,000 for married couples filing jointly, up $3,000 and $6,000, respectively, from 2025. As a result, individuals with MAGI below $153,000 and married couples filing jointly with MAGI under $242,000 can make the full annual contribution.
Finally, a significant change brought about by the SECURE 2.0 Act requires that certain high-income savers making catch-up contributions do so via Roth accounts. This applies to those with FICA wages over $150,000 for 2025 and planning to make catch-up contributions in 2026. Because Roth contributions are made with after-tax dollars, these savers may end up with a slightly higher tax burden this year.
A Key Clarification on Roth Catch-Up Contributions
The Roth catch-up requirement applies only to catch-up contributions made to employer-sponsored retirement plans, not to IRAs, and is based on prior-year FICA wages rather than current income.
New Retirement Rules for Self-Employed and Small-Business Savers
Self-employed savers and those contributing to a SEP-IRA plan via their employers may, in some cases, be able to contribute up to $72,000 in combined employer contributions toward these plans in 2026, up $2,000 from 2025. However, it’s important to note that contributions may be no more than 25% of total compensation, even if that amounts to less than the $72,000 limit.
For owners of small businesses contributing to SIMPLE plans on behalf of their employees, the individual contribution limit has increased by $500 to $17,000 for 2026. Catch-up contributions for most SIMPLE plans are now capped at $4,000, up from $3,500 last year.
One More 2026 Change for Savvy Retirement Savers
Although not technically a retirement account, health savings accounts (HSAs) can help cover medical costs in retirement. For 2026, contribution limits rose to $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 catch-up contribution available to savers ages 55 and up.
