401(k) and IRA Contribution Limits for 2026

The IRS adjusts retirement limits annually based on inflation via IRS Notice 2025-67. Every major category increased for 2026 — the broadest set of bumps in three years.

The IRA catch-up increase to $1,100 is notable — SECURE 2.0 added annual cost-of-living adjustments to IRA catch-ups for the first time. Previously, this figure was a static $1,000 for over two decades.

The broader retirement account taxonomy is covered in the IRS Publication 590 explainer.

This comparison covers the four main retirement account types. Use it to figure out which combination gives you the most tax-advantaged space.

The SEP IRA's $72,000 ceiling makes it the most powerful vehicle for high-earning self-employed workers. But it only accepts employer-style contributions — you can't split between employee deferrals and employer match like a Solo 401(k). At incomes below roughly $150,000, a Solo 401(k) often allows larger total contributions. The full mechanics for self-employed savers are covered in the SEP IRA guide.

Roth IRAs have income gates that other accounts don't. For 2026:

Single filers:

• Full contribution allowed: MAGI under $153,000
• Reduced contribution: $153,000–$168,000
• No direct contribution: above $168,000

Married filing jointly:

• Full contribution allowed: MAGI under $242,000
• Reduced contribution: $242,000–$252,000
• No direct contribution: above $252,000

Traditional IRA deduction phase-outs (if covered by a workplace plan):

• Single: $81,000–$91,000
• MFJ (contributing spouse covered): $129,000–$149,000
• MFJ (non-covered spouse married to covered): $242,000–$252,000

If your income exceeds the Roth limits, the backdoor Roth conversion remains available: contribute $7,500 to a non-deductible Traditional IRA, then convert to Roth. The IRS hasn't shut this door. Watch the pro-rata rule — if you hold pre-tax IRA balances, a portion of your conversion will be taxable. Rolling pre-tax IRA money into a 401(k) before converting solves this. The tradeoffs versus a straight Traditional IRA are detailed in the Roth vs Traditional comparison.

For the small slice of workers whose 401(k) plan documents allow it, the mega backdoor Roth turns the $24,500 employee deferral cap into a $46,000+ Roth contribution opportunity. It is the single largest Roth lever in the tax code, and most people never use it.

The mechanics rely on three numbers: the employee deferral limit ($24,500), the employer-match contribution, and the overall 401(k) limit of $72,000 (Internal Revenue Code §415(c)). The gap between your pre-tax/Roth deferrals plus employer match and the $72,000 ceiling is the room available for after-tax (non-Roth) contributions.

Worked example for a worker under 50:

• Employee Roth deferral: $24,500
• Employer match: $7,500
• Headroom under §415(c): $72,000 − $32,000 = $40,000 in after-tax contributions
• In-plan Roth conversion: convert the $40,000 after-tax bucket to Roth (no tax owed on contributions, only on any growth between contribution and conversion)

Result: $64,500 in Roth-tax-treated dollars in a single year, versus $7,500 via a regular IRA contribution. Over a 25-year working career, the difference compounds into well over $1 million in additional tax-free retirement assets at 7% returns.

The two requirements:

1. Plan document allows after-tax contributions. Roughly half of large employer plans permit them. Vanguard's 2025 How America Saves report puts the figure at 46% of plans they administer. Smaller employers using off-the-shelf 401(k) products almost never allow it.
2. Plan allows in-plan Roth conversions or in-service distributions. Without conversion mechanics, after-tax contributions grow tax-deferred but the gains are taxed as ordinary income on withdrawal — eliminating the strategy's value.

If both boxes are checked, the mega backdoor Roth is the highest-impact retirement move available. Ask HR for the plan's Summary Plan Description (SPD) and search for "after-tax contributions" and "in-plan Roth conversions" or "in-service distributions."

Self-employed workers using a Solo 401(k) can build the mega backdoor into their own plan documents from day one. Custodians like Fidelity and Schwab's standard Solo 401(k) products do not support after-tax contributions; you need a custom-document Solo 401(k) from providers like My Solo 401k Financial or RocketDollar.

Required Minimum Distributions (RMDs) force money out of pre-tax retirement accounts on an IRS-set schedule once you hit a triggering age. SECURE 2.0 (signed December 2022) and SECURE 2.0's regulations updated since 2024 have substantially loosened the regime. The current rules, as of 2026:

RMD age

• Born 1951–1959: RMDs begin at age 73
• Born 1960 or later: RMDs begin at age 75

This is a meaningful planning window. A worker born in 1960 retiring at 65 now has 10 RMD-free years to convert pre-tax balances to Roth at lower marginal rates before mandatory distributions kick in.

Penalty for missed RMDs

• Standard penalty: 25% (down from the punitive 50% pre-SECURE 2.0)
• Reduced penalty if corrected within 2 years: 10%

Roth 401(k) RMDs eliminated Starting in 2024, Roth balances inside a 401(k) are no longer subject to RMDs during the original owner's lifetime. This brings Roth 401(k)s in line with Roth IRAs and removes one of the long-standing reasons to roll Roth 401(k) money out at retirement. If your plan supports Roth 401(k) and offers good investment options, you can leave the money there indefinitely.

Surviving spouse election A surviving spouse can now elect to be treated as the deceased spouse for RMD purposes — useful if the deceased was younger, because it pushes the RMD start date out further.

Why this matters for the contribution decision The later RMD age strengthens the case for pre-tax 401(k) deferrals at high marginal rates today, with planned Roth conversions during the gap years between retirement and RMDs. The full conversion mechanics and break-even math are covered in the Roth Conversions 2026 guide. For a deeper treatment of distribution rules, see Required Minimum Distributions Explained.

Raw limits don't tell you what matters — how much of your income you can actually redirect into tax-advantaged accounts. Here are three scenarios for workers under 50.

$75,000 salary — single filer:

• 401(k): $24,500 (32.7% of gross)
• Roth IRA: $7,500 (full eligibility)
• HSA (if eligible): $4,300
• Total sheltered: $36,300 (48.4% of gross income)
• Estimated federal tax savings at 22% bracket: ~$6,336 on pre-tax contributions

$150,000 salary — single filer:

• 401(k): $24,500 (16.3% of gross)
• Roth IRA: $7,500 (full eligibility — MAGI under $153K after 401(k) reduces AGI)
• HSA: $4,300
• Total sheltered: $36,300 (24.2% of gross income)
• At the 24% bracket margin, pre-tax 401(k) saves ~$5,880 in federal taxes alone

$250,000 salary — married filing jointly:

• Two 401(k)s: $49,000 ($24,500 each)
• Roth IRAs: $15,000 ($7,500 each) — check MAGI after 401(k) reductions; phase-out starts at $242K
• HSA (family): $8,750
• Total sheltered: up to $72,750 (29.1% of gross income)
• At the 32% marginal bracket, pre-tax deferrals save ~$15,680 in federal taxes

These calculations exclude employer matches. A typical 50% match on the first 6% of salary adds $2,250 at $75K income, $4,500 at $150K, and $7,500 per spouse at $250K — all free money that compounds alongside your own contributions.

SECURE 2.0 created an enhanced catch-up window for workers aged 60, 61, 62, and 63. Instead of the standard $8,000 catch-up, these workers can defer an additional $11,250 in 401(k) plans — bringing their total employee deferral to $35,750 for 2026.

That's $3,250 more per year than a worker aged 50–59 can contribute. Over the four-year window from 60 to 63, that's an extra $13,000 in tax-advantaged space (assuming the differential remains stable).

For SIMPLE IRAs, the super catch-up is $5,250 (vs. $4,000 for the standard 50+ catch-up), for a total of $22,250.

One catch: not every plan has adopted this provision yet. Check with your HR or plan administrator. Larger employers have generally updated their plans; smaller companies using off-the-shelf 401(k) platforms may lag. If your plan hasn't adopted the super catch-up, push for it — the IRS has given plans until the end of the 2026 plan year to implement the provision retroactively.

At 64, you drop back to the standard $8,000 catch-up. The window is narrow — four years, then it's gone.

The Roth catch-up rule for high earners. SECURE 2.0 §603 requires catch-up contributions for workers earning more than $145,000 (indexed) in the prior year to be made on a Roth basis — meaning after-tax. The IRS has delayed enforcement of this provision multiple times; the latest guidance (Notice 2023-62) postponed the effective date to 2026. If you are over 50 and earn above $145,000, expect your 2026 catch-ups to land in the Roth bucket whether you wanted them there or not.

The limits are per-account-type, not per-person. Stack them.

A worker under 50 with a 401(k), IRA eligibility, and an HSA-qualifying health plan can shelter $36,300 in 2026. A worker over 50 pushes that to $42,400 ($32,500 + $8,600 + $1,300 HSA catch-up).

Prioritize in this order:

1. 401(k) up to the employer match. A 50% match on 6% of a $100K salary is $3,000/year — a guaranteed 50% return before the market opens.

2. Max the HSA if you have a high-deductible health plan. The triple tax advantage — deductible going in, tax-free growth, tax-free withdrawals for medical expenses — makes this the single most tax-efficient account. You can invest HSA funds and let them compound for decades.

3. Max the Roth IRA (or backdoor Roth). Tax-free growth, no RMDs, and the ability to withdraw contributions penalty-free make this the most flexible account for early retirees.

4. Max the 401(k) to $24,500. After the match, HSA, and Roth, fill the rest of your 401(k) to cut taxable income.

5. Taxable brokerage for anything beyond. No limits, no restrictions, but you'll owe capital gains taxes. Use tax-loss harvesting to manage the drag.

For self-employed workers, a SEP IRA's $72,000 ceiling often beats all other options combined — but you sacrifice Roth deferrals. A Solo 401(k) with Roth elective deferrals can be more powerful below $200K in self-employment income.