Whether you’ve offered a retirement plan for years, just started one, or are considering adding it to your employee benefits package, staying current on retirement contribution limits is essential.
Each year, the IRS updates contribution limits for 401(k), 403(b), 457(b), and IRA plans to reflect cost-of-living adjustments. These updates determine how much employees can contribute, the tax advantages they receive, and how much employers can match. Knowing the 2026 IRS contribution limits helps your business stay compliant and ensures employees are maximizing their retirement savings.
Read up on the 2026 retirement contribution limits to prepare your business and your employees.
2026 401(k) Contribution Limits
The 401(k) contribution limit for 2026 has increased to $24,500, up from $23,500 in 2025. This means employees can contribute an additional $1,000 to their traditional or Roth 401(k) plans.
If your company offers a 401(k) employer match, note that the total combined contribution limit (employee + employer) under IRC 415(c) has risen to $72,000 in 2026.
This includes elective deferrals, employer matching, and profit-sharing contributions.
Employees aged 50 and older can make an additional catch‐up contribution of $8,000, bringing their total potential employee deferral to $32,500 (base $24,500 + $8,000). For those aged 60 to 63, the “super catch-up” contribution remains at $11,250 for 2026, for a potential total employee deferral of $35,750.
These 401(k) limits for 2026 apply to both Traditional (pre-tax) and Roth (after-tax) contributions.
403(b) and 457(b) Contribution Limits for 2026
The 2026 limits for the elective deferral component of the 403(b) plan and most 457(b) plans match the 401(k) limits: an elective deferral cap of $24,500, with the same $8,000 catch-up for those 50 and older. Governmental 457(b) plans may also allow an additional “last‐three‐years” catch-up provision for participants nearing retirement (separate rules apply).
Roth 401(k) Catch-Up Rule for 2026
Beginning in 2026, employees who earned more than $150,000 in Social Security wages (Box 3 of the W-2) in the prior year must make their catch-up contributions as Roth (after-tax) contributions rather than traditional pre-tax. This Roth catch-up rule—part of the SECURE 2.0 Act—means employees will pay tax on the contribution now but enjoy tax-free qualified withdrawals of both contributions and earnings in retirement. Those earning $150,000 or less can continue to make traditional pre-tax catch-up contributions (or Roth if they prefer and the plan allows).
Employers should communicate this change to affected employees to help them understand how it may impact their payroll deductions and future tax planning.
401(k), 403(b) & 457(b) Plan Limits
2026 IRA Contribution Limits
For individuals saving outside of employer-plans, the 2026 IRA contribution limit is $7,500, up from $7,000 in 2025. The IRA catch-up limit for those aged 50 and older remains $1,100, giving a total contribution limit of $8,600 for those 50+ (assuming full catch-up).
These limits apply to both Traditional IRAs and Roth IRAs. Traditional IRA deductibility is subject to income phase-out ranges, depending on filing status and whether an individual or spouse is covered by a workplace retirement plan.
Why Knowing the 2026 Retirement Plan Limits Matters
As a 401(k) plan sponsor, staying informed about 2026 IRS retirement contribution limits ensures your plan remains compliant and competitive.
These annual updates influence how much employees can save, the employer contribution strategy, and the overall tax benefits available to both the business and its workforce.
By keeping plan documents updated and proactively communicating changes—especially the new Roth catch-up rule—you can help employees make informed choices and get the most from their retirement plan.
Do you have questions about retirement contribution limits or overall 401(k) plans? Speak with an FSRP advisor today to learn how we can help!
Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Financial Strategies Retirement Partners (FSRP) is a Registered Investment Adviser. Financial planning services offered by FSRP are separate and unrelated to Commonwealth.