2026 Retirement Plan Contribution Limits: Everything You Need to Know

Catch-up contributions refer to additional contribution allowances for people ages 50 or older. Because this age group is closer to retirement age than others, their contributions typically can’t benefit from as many years of growth. As such, the IRS allows them higher contribution limits than the general population.

The exact amount you can contribute depends on your age. Those ages 50 to 59 and those 64 years or older receive an additional allowance, while those ages 60-63 — who are often in their last few years of employment — have even higher allowances for certain types of retirement accounts.

Given the catch-up contributions detailed above, here are the total increased limits for those ages 50 and up:

Catch-up contribution limits, 2026 

– 401(k), 403(b), most 457 plans, & TSPs 

• Employee pre-tax contribution limit
  • Ages 50-59 & 64+:  $32,500
  • Ages 60-63:  $35,750 

• Employee + employer contribution limit
  • Ages 50-59 & 64+: $80,000
  • Ages 60-63:  $83,250 

– IRAs

• Ages 50+: $8,600 

– SIMPLE IRA, SIMPLE 401(k) plans 

• Standard limit:
  • Ages 50-59, 64+: $21,000
  • Ages 60-63: $22,250 

• Enhanced limit:
  • Ages 50-59, 64+: $21,950
  • Ages 60-63: $ $23,350
    (Worth nothing: The figure is based on a 10% increase of the 2025 year max employee SIMPLE IRA deferral ($17K), which is $18,100, PLUS $5,250. There are catch-up SIMPLE IRA deferrals in 2026 for those ages 60-63, so the catch-up figure remains $5,250 for both standard and enhanced limits)

READ MORE: How Should You Fund Your Retirement Spending?

You can deduct pre-tax retirement plan contributions to lower your Adjusted Gross Income (AGI). Beyond directly reducing your tax burden, this may also help you qualify for certain tax credits that you wouldn’t have qualified for otherwise. You may not always be able to deduct the full amount of pre-tax contributions for every account, though. 

Traditional IRA Phase-Out Limits, 2026 

For example, if you or your spouse have a retirement plan through your employer, your ability to deduct contributions made to a Traditional IRA is based on your Modified Adjusted Gross Income (MAGI). The phase-out limits for Traditional IRA deductions are as follows:

• Single filers: $81,000 to $91,000
• Married filing jointly: $129,000 to $149,000
• Married filing separately: $0 to $10,000

As your income increases, the amount of pre-tax IRA contributions you can make decreases proportionately. For example, a single filer making $86,000 is right in the middle of the phase-out range — therefore, they could only deduct 50% of their traditional IRA contributions.

Anyone earning beyond the upper limit of the phase-out range, meanwhile, cannot deduct traditional IRA contributions. Note that there are no separate phase-out limits for pre-tax contributions to 401(k), 403(b), and most 457 plans (other than the standard contribution limits mentioned earlier).

Roth IRA Income Phase-Out Limits, 2026 

While Roth IRA contributions are not tax-deductible, income limits do affect how much you can contribute. Here are the phase-out ranges for Roth IRA contributions: 

• Single filers/heads of household: $153,000 to $168,000
• Married filing jointly: $242,000 to $252,000
• Married filing separately: $0 to $10,000

The amount you can contribute is again tied proportionally to your income. For example, a single filer that earned $$160,500 — right in the middle of the phase-out range — could only contribute 50% of the Roth IRA contribution limit. Assuming that person was less than 50 years old, that would come out to $3,750 ($7,500 x 50%). 

Anyone earning above the upper limit cannot contribute at all — but there is a workaround, as we’ll discuss later. 

In 2026, the IRS defines highly compensated employees (HCEs) as anyone who: a) earns $160,000 or more or b) owns more than 5% of a business. HCE status can affect retirement contributions in a few ways: 

• Only the first $360,000 of an HCE’s salary is eligible for certain retirement plan contributions and benefits in 2026.
• For example, if a company offers 401(k) matching based on a percentage of the employee’s salary, the salary used for calculating contributions may not exceed $360,000, even if the employee earns more than that.
• HCEs are more likely to hit the maximum 401(k) employee and employer contribution limit of $72,000.
• HCEs can receive no more than $290,000 annually from a pension plan or other defined benefit plan.
• Per the phase-out limits mentioned earlier, HCEs may not be able to deduct Traditional IRA contributions or make any direct Roth IRA contributions.

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If your salary surpasses the Roth IRA income limits, don’t worry — there’s a common workaround that is completely above board. A backdoor Roth IRA allows high earners to convert traditional IRA funds into Roth IRA funds.

To create a backdoor Roth IRA, all you have to do is:

• Contribute to a traditional IRA.
• Convert your contribution to Roth IRA funds.
  Note: If you don’t already have a Roth IRA, you’ll need to open one.

• If you don’t have any other money in a traditional IRA, you will have to pay income taxes only on the earnings when you convert from a traditional IRA to the Roth IRA (contributions to Roth IRAs must be post-tax). If you do have other IRA money, your tax owed will be based on the ratio of nondeductible contributions to the total balance in all of your pre-tax IRAs.
  Note: This strategy can be complicated and may not be the best option. You may want to discuss the tax-efficiency of backdoor Roth funding with a financial planner or advisor. A personal financial advisor or your retirement plan administrator can help you with the step-by-step process and paperwork.

Once you’ve completed this process, the funds in your Roth IRA can grow tax-free. This is particularly useful if you expect to move up a tax bracket once you retire.
 

READ MORE: Financial Planning & Budgeting Strategy for High-Income Professionals 

Because they have no employer, business owners, freelancers, independent contractors, and otherwise self-employed individuals cannot contribute to employer-sponsored plans such as 401(k)s, 403(b)s, or 457s. However, there are a couple of alternatives: Simplified Employee Pensions (aka SEP IRAs) and Solo 401(k)s.

SEP IRAs 

SEP IRAs are retirement savings accounts that allow businesses (including self-employed individuals) to make tax-deductible contributions on their employees’ behalf.8 As with traditional IRAs, SEP IRAs are tax-deferred. Contributions come from pre-tax funds — you only pay taxes on SEP IRA withdrawals when you receive them. The 2026 SEP IRA limit is $72,000.

One significant caveat with SEP IRAs is that they require you to contribute to all employees’ plans equally. If the owner of a four-person company contributes 15% of their salary, they must also contribute 15% to each of their full-time employees’ SEP IRAs. As a result, SEP IRAs are best suited for business owners with few or no other full-time employees. SEP IRAs also require minimum distributions and don’t allow for additional catch-up contributions.

That said, they are still well worth exploring for a small business owner or self-employed individual.

Solo 401(k)s 

While both individuals and businesses with multiple employees can set up a SEP IRA, Solo 401(k)s are for one person only (plus their spouse, if they receive income from the business).

You can choose between a traditional, pre-tax Solo 401(k) or a post-tax Roth Solo 401(k). Contributions to traditional Solo 401(k)s are tax-deductible up to the same income limits mentioned earlier, while post-tax Roth Solo 401(k)s are not, given that they’re taxed upon distribution.

The Solo 401(k) limit for individuals and their spouses is $72,000 each in 2026. Catch-up contributions can increase this to $80,000 for those between 50 and 59 as well as those 64 and older. Those between 60 and 63, meanwhile, can contribute up to $83,250.

Keep in mind that Solo 401(k)s are not suitable for any business with more than one full-time employee. They also require more administrative work than other retirement plan options, must be terminated if the business closes, and do not allow for automatic contributions.

Still, they can be a good fit for self-employed individuals and one-member businesses — especially if they have a spouse who receives money from the business.

READ MORE: 3 Reasons Your Tax and Financial Advisors Should Work Together Closely 

To account for a pension when planning for retirement, it’s critical to thoroughly review the summary plan description (SPD). This will help you understand whether you meet eligibility requirements, when you can begin receiving your pension, and how the benefits are calculated, among other information.

Using the pension calculation formula and your current and projected future salaries, you should have a rough idea of what your monthly benefit will be in retirement. You may be able to contact HR to request a pension estimate, or find a pension calculator online. After that, you’ll need to think about when you plan to withdraw from the workforce and what your monthly expenses will be.

This can all be fairly complex to navigate on your own, so don’t hesitate to reach out to a personal financial advisor for assistance. 

Beyond the strategies we mentioned above, there are many other ways to make the most of your retirement contributions. This might include: 

• Contributing as early as possible to take full advantage of the compounded interest
• Maxing out your 401(k) and IRA contributions whenever you can
• Reducing your MAGI to meet Roth IRA contribution eligibility, such as by contributing to an HSA, healthcare or dependent-care FSA, claiming deductions, tax-loss harvesting, etc.