Understanding how much you can contribute toward retirement each year helps you stay on track with long-term financial goals and avoid surprises at tax time. For high-income earners—especially physicians, dentists, executives, and business owners—reviewing these annual increases early allows you to adjust payroll contributions before January.
Below is a breakdown of the official 2026 retirement contribution limits released by the IRS, along with what they could mean for you.
The employee contribution limit for 401(k), 403(b), and most 457(b) retirement plans will increase from $23,500 in 2025 to $24,500 in 2026.
If you maximize your annual retirement deferral, make sure your percentage or flat-dollar election is updated to reach the full amount in 2026.
Here’s how much you need to contribute per pay period if using a flat-dollar amount:
For 2026, the standard catch-up contribution (available at age 50 and older) for 401(k)s, 401(b)s, and most 457(bs)s is increasing from $7,500 to $8,000.
Participants ages 60–63 may continue to make the enhanced catch-up contribution of $11,250 (through the SECURE 2.0 enhancement), which remains unchanged for 2026.
If you'll be age 50 or older in 2026, your total employee contribution limit becomes:
If you’ll be ages 60–63 in 2026:
Here’s what that looks like per pay period using a flat-dollar contribution:
Beginning in 2026, if your prior-year wages exceed $150,000 (indexed), all catch-up contributions—standard or enhanced—must be made as Roth (after-tax) contributions.
For 2026, the annual contribution limit for IRAs (Traditional and Roth combined) increases from $7,000 to $7,500.
The IRA catch-up contribution (age 50+) will increase from $1,000 to $1,100, bringing the total possible contribution to:
(These limits were released earlier in the year by the IRS and are already official.)
These amounts apply only if you are enrolled in a qualified high-deductible health plan (HDHP).
| Account Type | 2025 Limit | 2026 Limit | Catch-Up (Age 50+) | Enhanced Catch-Up (Age 60–63) |
|---|---|---|---|---|
| 401(k), 403(b), 457(b) | $23,500 | $24,500 | $8,000 | $11,250 |
| Traditional IRA / Roth IRA | $7,000 | $7,500 | $1,100 | N/A |
| SEP IRA | $69,000 | $72,000 | N/A | N/A |
| SIMPLE IRA | $16,000 | $16,500 | $3,500 | N/A |
| HSA (Self-only Coverage) | $4,150 | $4,400 | $1,000 (age 55+) | N/A |
| HSA (Family Coverage) | $8,300 | $8,750 | $1,000 (age 55+) | N/A |
A) The IRS announced the 2026 limits in late 2025. The updates include increases for employee deferrals, IRA contributions, and catch-up amounts.
A) The maximum employee contribution for 401(k), 403(b), and most 457(b) plans is $24,500 in 2026.
A) For 2026, individuals age 50 and older can contribute the standard $8,000 catch-up amount, for a total of $32,500.
A) Yes. Individuals aged 60–63 can contribute an additional $11,250, for a total of $35,750.
A) Yes, if your prior-year compensation exceeds $150,000 (indexed), all catch-up contributions must be made as Roth (after-tax) beginning in 2026.
A) You can contribute up to $7,500 in 2026. The IRA catch-up contribution (age 50 and above) increases to $1,100, for a total of $8,600.
A) HSA limits are $4,400 for self-only coverage and $8,750 for family coverage, with a $1,000 catch-up contribution for individuals aged 55 or older.
A) Most employees update their contributions during open enrollment or before the first payroll of January. Making adjustments early helps you evenly spread contributions throughout the year.
A) Because catch-up contributions may require Roth treatment, high-income earners may need to review their tax planning strategy and confirm their plan allows Roth catch-up contributions.
If you’re unsure how these changes might affect your retirement plan or if making adjustments to payroll elections, plan type, or savings priorities could be helpful, reach out to your financial planner. You don’t have to handle these updates on your own. Spaugh Dameron Tenny is here to assist with every financial decision.
Any discussion of taxes is for general information purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.
Sources & References
Internal Revenue Service (IRS)
IRS Notice 2025-67 — Retirement Plan Cost-of-Living Adjustments for 2026
(401(k), 403(b), 457(b), catch-up contributions, SEP IRA, SIMPLE IRA, 415(c) limits, compensation thresholds)
➤ https://www.irs.gov/pub/irs-drop/n-25-67.pdf
IRS News Release — 401(k) Limit Increases to $24,500 for 2026; IRA Limit Increases to $7,500
(IRA contribution limit, IRA catch-up increase)
➤ https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
IRS Revenue Procedure 2025-19 — Health Savings Account (HSA) and High-Deductible Health Plan Limits for 2026
➤ https://www.irs.gov/pub/irs-drop/rp-25-19.pdf
CRN202811-9910852
Jordan Bilodeau, CFP®, CEPA, is the Director of Planning & Strategy at Spaugh Dameron Tenny, where he leads firmwide planning initiatives and helps clients navigate complex financial decisions. With experience in portfolio design, tax strategies, and business succession planning, Jordan works with executives, physicians, dentists, and successful retirees to coordinate every aspect of their financial lives. He holds both the CERTIFIED FINANCIAL PLANNER® and Certified Exit Planning Advisor designations and has a Master’s degree in Wealth and Trust Management, providing tailored guidance for clients.
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