2026 IRS Retirement Plan Limits
As in years past, 2025 has brought its share of ups and downs and many of us are eager to see what the new year will bring. As we approach the end of 2025, now is an excellent time to revisit our financial plans and make sure we’re on track. Each year, the IRS updates retirement plan contribution limits to reflect inflation, and 2026 is no exception, as the new limits have just been announced.
Here are some of the more notable changes for 2026:
2026 Retirement Plan Limits for 401(k)/403(b)
Let’s start off with the most common plans. The limit for 401(k) and 403(b) plans is $24,500 for 2026, up from $23,500 last year. If you are age 50 or older, you also are allowed a “catch-up” contribution to encourage additional savings, which is $8,000 this year, up from $7,500 in 2025, for a total maximum contribution of $32,500. Additionally, again this year there is an additional “catch up” provision for those ages 60, 61, 62, or 63, are allowed a total “catch up” contribution of $11,500.
The other adjustment is to total contributions. The adjustment to the TOTAL limit for these plans has increased to $72,000 ($80,000 including catch up contributions) in 2026 from $70,000 ($77,500 including catch up contributions) in the previous year. These amounts include employer contributions, after-tax contributions, etc., and are the absolute maximum amount that can be contributed to these plans in a given year.
2026 Retirement Plan Limits for Traditional IRAs and Roth IRAs
In 2026, the IRS has increased the contribution limit for IRAs. The standard contribution is now $7,500, up from $7,000 in 2025. There is also an additional $1,100 “catch-up” contribution available to those 50 and older for a total of up to $8,600. Please keep in mind that IRAs and Roth IRAs have income considerations, which have been adjusted for 2026, so be sure to review these income thresholds before making contributions.
2026 Retirement Plan Limits for HSAs
HSA savings account limits have increased again for 2026. In 2026, the family plan maximum contributions increased $200 for a total of $8,750. Individuals also increased by $100 to a level of $4,400 for 2026.
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2026 Retirement Plan Limits for SEP IRAs
Business owners and self-employed individuals will be able to save a bit more this year as well. The maximum contribution to a SEP IRA increases to $72,000 in 2026, up from $70,000 in 2025. This maximum is subject to a percentage of income calculation as well.
2026 Retirement Plan Limits for SIMPLE IRA Plans
Employees with a SIMPLE IRA plan will see an increase of $500 again in 2026. The SIMPLE maximum contribution will now be $17,000 in 2026, up from $16,500 last year. Employers with 25 or fewer employees can contribute up to $18,500 to their SIMPLE plans in 2026. Due to the SECURE Act 2.0, there is an increase in the catch-up contribution limits for participants who have reached ages 60, 61, 62, or 63, which is $5,250 again for 2026. SIMPLE IRA participants over age 50 (but not yet age 60, 61, 62, or 63) are also eligible to save an additional $4,000 “catch-up” contribution.
There are slight differences in 2026 for retirement contribution limits, so be sure to adjust your savings to take full advantage of your retirement accounts. Hopefully, 2026 is your best year yet, and we can look forward to less volatility in the year ahead!
If we can answer any questions about how this may relate to your financial plan, please get in touch with us below!