Don’t Sleep on 2026 Retirement Contribution Limits
Listen up, my financial warrior friends! The IRS doesn’t hand out bigger retirement contribution limits like ear plugs at a metal show. They claim it’s all “indexed to inflation.” Sure, but sometimes that indexing moves slower than a power ballad. Still, limits do rise… just not every year, and not by the same formula for every account.
After inflation spiked in 2022, the 2023 bump was huge. Since then? Inflation’s cooled, the Fed’s flexed, and the IRS has gone back to its usual modest increases. So for 2026, we’re getting steady, predictable growth with nothing too crazy, but better than flatlining.
Before we dive into the numbers, let’s hit the biggest rule shake-up coming from SECURE 2.0. This is the the set of laws that just keeps financial planners both excited and confused lol!
The SECURE 2.0 Catch-Up Shake-Up
- Roth catch-ups for high earners are coming.
If your prior-year wages exceed roughly $145,000, your 401(k) or 403(b) catch-up contributions will eventually have to be Roth (after-tax).
But hold the phone! This rule will now kick in after December 31, 2026, meaning most plans start in 2027. - “Super Catch-Up” for Ages 60–63.
The SECURE 2.0 lets savers in their early 60s go total beast-mode and level up to 150% of the normal catch-up (or more, if adjusted for inflation in the future). Think roughly $11,250 or higher, depending on inflation. - SIMPLE plans get a 110% boost.
SIMPLE IRA and SIMPLE 401(k) plans use a smaller bump (110% of the standard catch-up). Check your plan’s fine print since not every employer will adopt it right away.
The Eternal Battle of Inflation vs. Contribution Limits
Inflation never rests. The IRS uses CPI data to adjust limits, usually every year or two. That’s why these numbers crawl up slowly instead of leaping. If a year goes by and nothing changes, don’t panic and lose your shit. This is just the slow roll of math doing its thing.
Now let’s shred into the 2026 limits.
2026 Projected Contribution Limits
(IRS has not yet released official numbers for retirement plans. These are industry forecasts from Milliman and White Coat Investor as of October 2025.)
| Account Type | 2025 Limit | 2026 Projected Limit | Change |
|---|---|---|---|
| 401(k) / 403(b) employee deferral (under 50) | $23,500 | $24,500 | + $1,000 |
| Catch-up (50+) | $7,500 | $8,000 | + $500 |
| Super catch-up (ages 60–63) | ≈ $10,000 | ≈ $11,250 – $12,000 | Up to + 50% |
| 401(a) / 403(b) total (employee + employer) | $70,000 | $72,000 | + $2,000 |
| Total with catch-up (50+) | $77,500 | $80,000 | + $2,500 |
| 457(b) deferral limit | $23,500 | $24,500 | + $1,000 |
| Traditional / Roth IRA | $7,000 | $7,500 | + $500 |
| IRA catch-up (50+) | $1,000 | $1,100 | + $100 |
| SEP-IRA | $70,000 | $72,000 | + $2,000 |
| SIMPLE IRA / SIMPLE 401(k) | $16,500 | $17,000 | + $500 |
| HSA (single) official | $4,300 | $4,400 | + $100 |
| HSA (family) official | $8,550 | $8,750 | + $200 |
| HSA catch-up (55+) | $1,000 | $1,000 | no change |
| Healthcare FSA | $3,300 | $3,400 | + $100 |
| 401(a) compensation cap | $350,000 | $360,000 | + $10,000 |
| HCE (highly compensated employee) | $160,000 | $160,000 | no change |
Remember: You can’t always double-dip between plans. The 401(a) cap is separate from 403(b) only in certain employer structures. Please check your plan documents or talk to your administrator before you assume you can stack them.
Projected Phase-Out Ranges & Income Thresholds
| Tax Filing Status | 2025 | 2026 Projected |
|---|---|---|
| IRA deduction phase-out (single, active in plan) | $79,000 – $89,000 | $81,000 – $91,000 |
| IRA deduction phase-out (MFJ) | $126,000 – $146,000 | $129,000 – $149,000 |
| Roth IRA phase-out (single) | $150,000 – $165,000 | $153,000 – $168,000 |
| Roth IRA phase-out (MFJ) | $236,000 – $246,000 | $242,000 – $252,000 |
If your Modified Adjusted Gross Income, or MAGI, falls above those ranges, you can still play the Backdoor Roth IRA game to get your money into Roth territory.
Why None of This Feels Like a Victory
Yeah, everything’s going up! So is the cost of literally everything else. These “increases” just keep pace with inflation so your real buying power stays flat. Still, they matter. If you don’t take advantage of higher limits, you fall behind in real terms.
The IRS isn’t being, like, generous. They are just reacting to inflation’s gut punch. It’s on you to maximize what you can control. Things like contribution rates, investment allocation, and tax strategy.
Call to Arms: What You Should Do Right Now
- Update your deferrals.
Make sure your 401(k) and 403(b) contributions match the new limit, $24,500 if these forecasts hold. - Plan your catch-ups.
If you’re 50 or older, bump your contributions to the max $8,000. If you’re in that sweet 60–63 zone, gear up for the Super Catch-Up when your plan allows. - Watch the Roth rule.
High earners should prep for the 2027 Roth catch-up mandate now. Talk to HR to make sure your plan is ready to handle Roth catch-ups when it hits. - Check your MAGI.
Income phase-outs creep up too. If you’re close to the limit, plan ahead to stay eligible for direct IRA or Roth contributions. - Max the HSAs and FSAs.
HSAs still reign as triple-tax-advantaged beasts. If you’re eligible, pump that account to the max, $4,400 single / $8,750 family. - Don’t ignore the boring ones.
SIMPLEs and SEPs don’t get headlines they deserve, but they can reallymove the needle if you run a side business or contract gig.
If you were hoping for wild and crazy raises, sorry. This is more like that slow grinding riff than a fast thrasher. But that’s the game. Inflation’s still the villain in our story, It’s our move is to turn the volume up, maximize every tax-advantaged dollar you can, and keep building on your retirement!
You got this! Lock in your plan. Stay fierce. Horns up.
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