The IRS has recently announced the Cost-of-Living Adjustment (COLA) for 2026 retirement account contribution limits. There has also been a change to the 401(k), 403(b), and 457 “catch-up” for individuals with employment income above $145,000 in 2025.
401(k), 403(b), 457
For those who participate in their employer-provided 401(k), 403(b), or 457 plan, the contribution limit has increased from $23,500 in 2025 to $24,500 in 2026. The catch-up contributions for participants over the age of 50 have also increased from $7,500 to $8,000. The “super catch-up” contribution limit for those who are 60, 61, 62, and 63 remains $11,250 for 2026. This enhanced limit, introduced by the SECURE 2.0 Act, has been in effect since 2025. Eligibility for catch-up or super catch-up is based on the age you are on December 31 for the tax year contributions are made. Those who are considered highly compensated with greater than $145,000 in W2 income in 2025 must make their catch-up contribution as a Roth deferral. Refer to your plan administrator for additional details.
IRA (Traditional & Roth)
IRA contributions for 2026 increased from $7,000 to $7,500. The additional catch-up contribution for those 50 and over also increased to $1,100, allowing for those 50 and over to contribute $8,600 into their IRA for 2026.
Keep in mind the phase-out range for those wanting to make a direct contribution to a Roth IRA. For those filing single for 2026, the income phase-out range will be $153,000-$168,000. Married couples filing jointly phase-out at $242,000-$252,000. If you have income above the phase-out range and would like to contribute to a Roth IRA, reach out to your advisor to discuss backdoor Roth contributions.
There are also phase-out limits to make a deductible contribution to your traditional IRA. Single individuals that are covered by a qualified employer retirement plan have a phase-out range of $81,000-$91,000 for 2026. Married couples filing jointly and covered by a qualified employer plan phase-out at $129,000-$149,000. For married individuals who are not covered by a qualified employer retirement plan, but their spouse is, the phase-out range increases to $242,000-$252,000.
SIMPLE IRA
The elective deferral limit for SIMPLE plans will increase in 2026 to $17,000, up from $16,500. For catch-up contributions for participants aged 50 and older, the limit has been adjusted from $3,500 to $4,000. A separate, higher limit applies to participants in certain SIMPLE plans for employers with 25 or fewer employees. The 2026 deferral limit is now $18,100, up from $17,600. However, participants aged 50 and over in the small-employer plans remain subject to a $3,850 limit, unchanged from 2025. The “super catch-up” limit for participants aged 60 through 63 remains $5,250 for all SIMPLE IRAs.
SEP IRA
The SEP IRA contribution limit increases from $70,000 in 2025 to $72,000 in 2026. The compensation limit to calculate SEP and other retirement account contributions climbs to $360,000, up from $350,000.
Secure Your Future
The 2026 Cost-of-Living Adjustments offer a clear invitation to boost your retirement savings, with higher contribution ceilings across retirement accounts. We strongly recommend meeting with your advisor to review your current contribution rate, analyze the impact of the income-based phase-outs, and ensure you are maximizing every opportunity to secure your financial future in 2026.
2026 Contribution Limits
| Account | Age Group | Elective Deferral Limit | Catch-Up Contribution | Total Contribution Limit |
|---|---|---|---|---|
| 401(k), 403(b), 457 | Under 50 | $24,500 | N/A | $24,500 |
| 401(k), 403(b), 457 | Age 50-59 & 64+ | $24,500 | $8,000 | $32,500 |
| 401(k), 403(b), 457 | Age 60-63 | $24,500 | $11,250 | $35,750 |
| IRA (Traditional & Roth) | Under 50 | $7,500 | N/A | $7,500 |
| IRA (Traditional & Roth) | Age 50+ | $7,500 | $1,100 | $8,600 |
| SIMPLE IRA | Under 50 | $17,000 | N/A | $17,000 |
| SIMPLE IRA | Age 50-59 & 64+ | $17,000 | $4,000 | $21,000 |
| SIMPLE IRA | Age 60-63 | $17,000 | $5,250 | $22,250 |
| SEP IRA | Lesser of 25% of compensation or $72,000 | N/A | Lesser of 25% of compensation or $72,000 |
