Hailey
Good news for savers: most retirement plan limits are set to rise in 2026, and a big rule change kicks in for catch-up contributions.
Below is a quick, practical guide so you can adjust your 2026 savings strategy with confidence.
What’s changing in 2026
- 401(k)/403(b)/457(b) elective deferrals: Projected to increase to $24,500 (from $23,500 in 2025).
- Standard catch-up (age 50+): Expected to rise to $8,000 (from $7,500 in 2025).
- Super catch-up (ages 60–63, SECURE 2.0): Likely $12,000 in 2026 (150% of the standard catch-up), up from $11,250 in 2025.
- Defined-contribution overall limit (§415(c)): Projected to $72,000 (from $70,000).
- IRAs (Traditional/Roth): Broadly expected to increase to $7,500 base (from $7,000) with the $1,000 age-50+ catch-up unchanged.
- SIMPLE IRA/401(k): Forecast $17,000 employee deferral (from $16,500), with catch-up amounts unchanged pending official confirmation.
Mandatory Roth catch-up for high earners starts in 2026
Beginning January 1, 2026, if your prior-year wages exceed an indexed threshold (baseline $145,000), any catch-up contributions must be Roth (after-tax).
Plans must enable Roth catch-up for you to make them.
Quick reference (projected vs. current)
| Account/Limit | 2025 (current) | 2026 (projected) | Notes |
|---|---|---|---|
| 401(k)/403(b)/457(b) Elective Deferral | $23,500 | $24,500 | Salary-deferral limit |
| Catch-Up (50+) | $7,500 | $8,000 | Standard 50+ catch-up |
| Super Catch-Up (ages 60–63) | $11,250 | $12,000 | SECURE 2.0 feature; plan must adopt |
| DC Plan Annual Addition (§415(c)) | $70,000 | $72,000 | Employer + employee (excludes catch-up) |
| Traditional/Roth IRA Base Limit | $7,000 | $7,500 | Catch-up $1,000 remains fixed |
| SIMPLE IRA/401(k) Deferral | $16,500 | $17,000 | Employee deferral; employer set rules |
Figures in the “projected” column reflect leading actuarial forecasts; final IRS numbers may differ slightly when published.
What this means for your paycheck
- Higher ceilings = more tax-advantaged savings. If you’re maximizing, bump your payroll deferral elections in January to target the new limits.
- Age 60–63? The super catch-up can add meaningful runway in your peak earning years—coordinate with HR to ensure your plan adopted this optional feature.
- High earners (Roth catch-up rule): If your 2025 wages clear the threshold, make sure your plan offers Roth and that your payroll system directs all catch-up to Roth starting 2026.
- IRA savers: A likely $500 bump improves flexibility, especially for spouses not covered by a plan; verify your income phase-outs once IRS posts them.
Smart next steps
- Update deferral elections for 2026 during enrollment to reach the higher 401(k)/403(b)/457(b) limit.
- Confirm plan features (Roth availability; super catch-up adoption; automatic escalation).
- Coordinate employer contributions to fully use the §415(c) annual addition room—especially if you receive profit-sharing.
- Adjust IRA/SIMPLE funding plans to reflect the projected increases.
The 2026 retirement plan landscape points to higher contribution limits across major accounts and a new Roth-only catch-up rule for high earners.
Maximize the upside by tweaking your payroll deferrals, verifying plan features (especially Roth and super catch-up), and aligning IRA/SIMPLE funding with the anticipated increases.
When the IRS publishes the official 2026 figures, confirm the final numbers and lock in a savings plan that fits your income, tax bracket, and retirement timeline.
FAQs
When will the IRS confirm the 2026 retirement plan limits?
The IRS typically posts official limits in early November of the prior year, so look for the final 2026 numbers around November 2025.
Do catch-up contributions count toward the §415(c) annual addition limit?
No. Catch-ups are separate under §414(v) and do not reduce the §415(c) limit.
What if my plan doesn’t offer Roth—can I still make 2026 catch-ups as a high earner?
If you are over the wage threshold and your plan lacks Roth catch-up capability, you will not be able to make catch-up contributions until the plan is amended to allow Roth.