2026 Contribution Limits
Annual Limits at a Glance
Retirement Plan Contribution Limits (Employer-Sponsored Plans)
For 2026, the annual contribution limit for employees participating in 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan increases to $24,500, up from $23,500 in 2025.
Participants aged 50 and older in these plans can contribute up to $32,500 in 2026 (the $24,500 standard limit plus an $8,000 catch-up).
Individuals aged 60–63 continue to qualify for the enhanced “super catch-up” under SECURE 2.0, which remains $11,250 for 2026
Updated Roth Catch-Up Requirement for Higher Earners
Beginning in 2026, catch-up contributions for participants aged 50 or older must be made as Roth (after-tax) if the participant earned $150,000 or more in the prior year (based on FICA wages).
This income threshold was recently increased from prior communications of $145,000, so plans and participants should adjust any prior guidance accordingly.
2026 IRA Contribution Limits
The annual IRA contribution limit increases to $7,500 for 2026 (up from $7,000 in 2025).
The IRA catch-up contribution for individuals aged 50 and older increases to $1,100 (up from $1,000), and will continue to be subject to annual cost-of-living adjustments going forward.
How to Maximize Your Contributions
To make the most of your Employer Sponsored Retirement Plan and stay on track for retirement, consider these key strategies:
1. Start Contributing Early
The sooner you begin saving, the more time your money has to benefit through compound returns—when your earnings generate earnings. Even small contributions made early can have a big impact over time.
2. Capture the Full Employer Match
If your employer offers a match—contribute at least enough to receive the full match. It's essentially free money toward your retirement.
3. Aim for a 15% Savings Rate
A good retirement savings target is 15% of your income, including employer contributions. If that feels out of reach today, start smaller and gradually increase your contributions—perhaps by 1% annually or after a raise.
4. Track Down Old Accounts
If you've changed jobs, you may have old 401(k)s you’ve lost track of. Review your employment history and consolidate accounts when appropriate. Keeping tabs on all your retirement assets ensures your savings are working efficiently for you.