The IRS has locked in the 2026 numbers, and they matter for anyone funding a retirement account this year. The 401(k) elective deferral limit climbs to $24,500, the IRA limit to $7,500, the age-50 catch-up to $8,000 — and if you're between 60 and 63, a special "super catch-up" lets you stash $11,250 on top of the base limit (IRS: 401(k) limit increases to $24,500 for 2026). We're nearly halfway through the year, which is exactly when these numbers should drive a decision: are your paycheck deferrals on pace to max out, or are you leaving room — and tax savings — on the table?
This isn't about chasing a headline. A higher limit only helps if you actually fund it, and the difference between coasting and dialing in your contribution rate now can be several thousand dollars of sheltered income by December 31.
The 2026 numbers at a glance
| Account / feature | 2026 limit | 2025 |
|---|---|---|
| 401(k)/403(b)/457/TSP elective deferral | $24,500 | $23,500 |
| Age 50+ catch-up | $8,000 | $7,500 |
| Super catch-up, ages 60–63 (SECURE 2.0) | $11,250 | $11,250 |
| Traditional/Roth IRA | $7,500 | $7,000 |
| IRA catch-up (50+) | $1,100 | $1,000 |
Source: IRS Newsroom. The 401(k) and IRA are separate buckets — you can fund both in the same year if you're eligible.
What actually changed (and what didn't)
The headline movers are the workplace plan deferral ($1,000 higher than 2025) and the IRA limit ($500 higher). The IRS adjusts these for inflation, so a bump isn't a windfall — it's the system keeping pace with rising wages and prices. Three takeaways worth internalizing:
- The age-50 catch-up jumped to $8,000, up from $7,500. If you're 50 or older, your total 401(k) deferral ceiling is now $24,500 + $8,000 = $32,500.
- The super catch-up held at $11,250. This is the SECURE 2.0 provision for the specific window of ages 60, 61, 62, and 63. In those years, your catch-up is $11,250 instead of $8,000, pushing your total deferral ceiling to $35,750. At 64, you drop back to the standard $8,000 catch-up.
- The IRA catch-up rose to $1,100, so savers 50+ can put $7,500 + $1,100 = $8,600 into an IRA.
A common mistake: people assume the catch-up tiers stack. They don't. You get the $8,000 catch-up or the $11,250 super catch-up depending on your age that year — not both.
Model your 2026 contributions in the 401(k) Calculator → — plug in your salary, deferral rate, employer match, and age to see whether you'll hit the limit by year-end.
The deferral limit vs. the total plan limit — don't confuse them
The $24,500 figure is just your salary deferral. The total that can flow into your 401(k) in 2026 — your deferrals plus employer match plus any after-tax contributions — is governed by a separate, much higher overall limit. That's why someone maxing the employee side at $24,500 can still receive thousands more in employer match without breaking any rule. If your plan offers a match, the match dollars sit on top of your $24,500, not inside it.
This is the single most valuable line in retirement saving: an employer match is a guaranteed, immediate return on your contribution. Before you decide whether to push toward the full $24,500, make sure you're at least deferring enough to capture every matching dollar your employer offers. Leaving match on the table is the costliest "small" mistake in the whole system.
Roth or Traditional? The 2026 income lines that decide for you
For a 401(k), Roth vs. Traditional is a tax-timing choice — pay tax now (Roth) or later (Traditional). But for a Roth IRA, your income can take the decision out of your hands. The 2026 phase-out ranges for direct Roth IRA contributions are (IRS):
| Filing status | 2026 Roth IRA phase-out (MAGI) |
|---|---|
| Single / Head of household | $153,000 – $168,000 |
| Married filing jointly | $242,000 – $252,000 |
| Married filing separately | $0 – $10,000 |
Below the bottom of your range, you can contribute the full $7,500. Inside the range, your allowed contribution shrinks. Above the top, you can't contribute directly to a Roth IRA at all — though a Traditional IRA (and, for some, a backdoor Roth strategy) may still be on the table. Knowing where you land in 2026 starts with knowing your marginal tax bracket, which determines whether paying tax now (Roth) or deferring it (Traditional) is the better bet.
Find your 2026 marginal and effective rate in the Federal Income Tax Calculator → — your bracket is the deciding input for Roth vs. Traditional.
A bonus for lower earners: the Saver's Credit
If your income is modest, contributing to a 401(k) or IRA can earn you the Saver's Credit — a direct credit (not just a deduction) on top of the account's own tax treatment. For 2026 the income ceilings rose to $80,500 for married filing jointly, $60,375 for head of household, and $40,250 for single filers (IRS). It's one of the few places where a retirement contribution pays you back twice.
Your mid-year move list
We're far enough into 2026 that a quick contribution check pays off:
- Calculate your run rate. Take your year-to-date 401(k) contributions, project them to December, and compare to $24,500 (or $32,500 / $35,750 with catch-up). If you're short and want to max, raise your deferral percentage now — the earlier you adjust, the smaller the per-paycheck bite.
- Confirm you're capturing the full match. This comes before maxing the limit. Every uncaptured match dollar is a guaranteed loss.
- Fund (or top up) your IRA. The $7,500 IRA is separate from your 401(k). You generally have until the 2026 tax-filing deadline in April 2027 to make 2026 IRA contributions, but funding earlier means more time in the market.
- Check your Roth eligibility against the phase-out. If a raise or bonus pushes your MAGI near the top of your range, plan the contribution method before year-end rather than scrambling at filing time.
The limits going up is the easy part. The value is in funding them — and the cheapest time to adjust your deferral for a full-year impact is mid-year, not in a December panic.
Related tools
- 401(k) Calculator — project deferrals, employer match, catch-up, and Roth vs. Traditional growth to retirement
- Federal Income Tax Calculator — find the marginal rate that drives your Roth-vs-Traditional decision
- Compound Interest Calculator — see what a maxed account compounds to over 20–30 years
Sources
- Internal Revenue Service — 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- Internal Revenue Service — Tax inflation adjustments for tax year 2026
This article is for information only and is not tax or investment advice. Contribution limits, phase-out ranges, and plan rules can change and depend on your specific situation — confirm the latest figures with the IRS and your plan administrator before acting. Figures cross-check publicly available IRS data as of June 13, 2026.