Contribution limits reset every year, and it is easy to be working off last year's numbers without realizing it. For 2026, both the 401(k) and IRA limits went up, and one genuinely new rule changed how catch-up contributions work for higher earners.

The short answer

For 2026, the 401(k) employee contribution limit is $24,500, up from $23,500. The IRA limit is $7,500, up from $7,000. If you are 50 or older you can add a catch-up contribution on top of both, and a new "super catch-up" lets those aged 60 to 63 add even more to a 401(k). Starting in 2026, high earners must make their 401(k) catch-up contributions as Roth, after-tax, rather than pre-tax.

2026 401(k) contribution limits

Standard employee limit
$24,500 in 2026, up from $23,500 in 2025. This is what you personally defer from your paycheck.
Catch-up, age 50 and older
An additional $8,000, bringing the total to $32,500 for anyone who turns 50 or older during the year.
Super catch-up, ages 60 to 63
A higher catch-up of $11,250 instead of $8,000, bringing the total to $35,750, for the specific window between ages 60 and 63.
Combined employee and employer limit
All contributions together, yours and any employer match or profit sharing, are capped at $72,000 ($80,000 with the standard catch-up, or $83,250 with the super catch-up at ages 60 to 63). See how the employer match works.
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New rule for 2026: if your W-2 wages subject to Social Security tax were over $150,000 in the prior year, your catch-up contributions (the $8,000 or the $11,250) must go in as Roth, after-tax, rather than pre-tax. This is a genuine change from how catch-up contributions used to work, not a repeat of an old rule.

2026 IRA contribution limits

The IRA limit rose to $7,500 for 2026, up from $7,000. This is a combined cap across a traditional IRA and a Roth IRA, not $7,500 into each. The catch-up for age 50 and older is now $1,100, up from a flat $1,000, since it is newly indexed to inflation, bringing the total to $8,600.

Roth IRA eligibility phases out at higher incomes. For 2026:

  • Single or head of household: phases out between $153,000 and $168,000 of modified adjusted gross income
  • Married filing jointly: phases out between $242,000 and $252,000
  • Married filing separately: phases out between $0 and $10,000, a range that is not adjusted for inflation

Above these ranges, direct Roth IRA contributions are not allowed, though the backdoor Roth IRA is a legal workaround. If you are still deciding between account types, see Roth versus traditional IRA.

HSA limits, for comparison

The HSA is not a retirement account by name, but it functions like one for many people. For 2026 the contribution limit is $4,400 for self-only health coverage and $8,750 for family coverage, plus a $1,000 catch-up at age 55 and older. See the HSA's triple tax advantage for the full breakdown.

The honest counterargument: maxing out is not automatically the right move

Higher limits create a temptation to treat "max it out" as the goal by default. That case has real merit: more room sheltered from taxes, more time for compounding, and a limit you cannot go back and use later if you skip a year. But it is not automatically correct for everyone.

  • High-interest debt usually comes first. A guaranteed double-digit interest cost on credit card debt is a stronger claim on your next dollar than an uncertain market return.
  • An emergency fund still needs to exist. Contributions to a 401(k) or IRA are not always easy or penalty-free to access if something goes wrong.
  • Liquidity has a cost. Money locked into a retirement account until 59 and a half is not available for a home down payment, a career change, or anything else in the next several years.

The resolution is not to ignore the limits, it is to hit them in the right order rather than all at once for their own sake. See the order of operations for funding your accounts for the sequence: employer match first, then high-interest debt, then the rest of tax-advantaged space, roughly in that order.

What a beginner should actually do

  1. Check your current payroll deferral percentage against the new dollar limit. A percentage that maxed you out in 2025 may not max you out in 2026 now that the cap moved.
  2. Remember the limits are per person, not per household. A married couple can each defer up to the 401(k) limit at their own employers, and each can contribute up to the IRA limit, for up to $15,000 combined into IRAs alone.
  3. If you are near the high-earner catch-up threshold, confirm with your plan how the new Roth catch-up requirement will be handled; most payroll systems apply it automatically once you cross $150,000 in the prior year.
  4. Do not chase the limit before the funding order. Capture the full employer match, keep an emergency fund, and handle high-interest debt before stretching to hit a higher cap.
  5. A mid-year check is a natural time to do this math. See the mid-year money review.
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The actionable takeaway: update your contribution percentage to reflect the new dollar limits, but let your funding order, not the limit itself, decide how much of that room you actually try to fill this year.

The quick version

  • 2026 401(k) employee limit: $24,500, up from $23,500
  • 401(k) catch-up at 50+: an extra $8,000; a new super catch-up at ages 60 to 63 adds $11,250 instead
  • Combined employee and employer 401(k) limit: $72,000, or up to $83,250 with the super catch-up
  • New in 2026: catch-up contributions must be Roth for anyone whose prior-year wages exceeded $150,000
  • 2026 IRA limit: $7,500 combined across traditional and Roth, up from $7,000, with a newly indexed $1,100 catch-up at 50+
  • Roth IRA eligibility phases out starting at $153,000 (single) or $242,000 (married filing jointly) in 2026
  • Higher limits are not a reason to skip the funding order: match, emergency fund, and high-interest debt still come first

The numbers change most years. The order you fund things in barely does. Update the percentage, keep the sequence.