The IRS has delivered good news for retirement savers: contribution limits for 2026 are going up across the board. The 401(k) limit rises to $24,500 (up from $23,500 in 2025), while the IRA limit increases to $7,500 (up from $7,000). For workers in their early sixties, new "super catch-up" provisions create even more opportunity to turbocharge savings.

These increases, driven by inflation adjustments mandated by law, represent real additional tax-advantaged savings capacity. An employee who maxes out their 401(k) in 2026 can shelter $1,000 more from taxes than they could in 2025—money that can compound for decades before retirement.

The 2026 Contribution Limits at a Glance

401(k), 403(b), and 457 Plans

  • Employee contribution limit: $24,500 (up from $23,500)
  • Catch-up contribution (age 50+): $8,000 (up from $7,500)
  • Total for age 50+ participants: Up to $32,500
  • Super catch-up (ages 60-63): $11,250
  • Total for ages 60-63: Up to $35,750
  • Combined employee + employer limit: $72,000

Traditional and Roth IRAs

  • Annual contribution limit: $7,500 (up from $7,000)
  • Catch-up contribution (age 50+): $1,100 (up from $1,000)
  • Total for age 50+: $8,600

SIMPLE Plans

  • Employee contribution limit: $17,000 (up from $16,500)
  • Catch-up contribution (age 50+): $4,000 (up from $3,500)

The Super Catch-Up: A Game Changer for Near-Retirees

Perhaps the most significant development for 2026 is the new "super catch-up" provision for workers aged 60 to 63. This provision, part of the SECURE 2.0 Act, allows these workers to contribute an additional $11,250 on top of the regular limit—significantly more than the standard $8,000 catch-up for those 50 and older.

The math is compelling. A 61-year-old worker can now contribute up to $35,750 to their 401(k) in 2026—$3,250 more than a 50-year-old and $11,250 more than a worker under 50.

"The super catch-up provision recognizes that workers in their early sixties often have their highest earnings and lowest expenses. Their kids are grown, their mortgages may be paid off, and they have just a few years left to maximize retirement savings before they stop working."

— Retirement planning specialist

Important New Rule: Mandatory Roth Catch-Up Contributions

There's a significant change for high earners making catch-up contributions in 2026. If your W-2 wages from a single employer exceeded $150,000 in 2025, all of your catch-up contributions to that employer's plan must now be made as Roth contributions.

This means:

  • No upfront tax deduction on catch-up contributions
  • Contributions grow tax-free and are withdrawn tax-free in retirement
  • You'll pay taxes on that money now rather than in retirement

Whether this is advantageous depends on your current versus expected future tax rates. For those who expect to be in a lower bracket in retirement, the mandatory Roth treatment may actually increase their lifetime tax burden. For those who expect similar or higher rates, it's a wash or a win.

Roth IRA Income Phase-Outs for 2026

The income limits for contributing to a Roth IRA have also increased:

  • Single/Head of Household: Phase-out begins at $153,000, ends at $168,000
  • Married Filing Jointly: Phase-out begins at $242,000, ends at $252,000

If your income exceeds these limits, you can still contribute to a Roth IRA through the "backdoor" strategy—making non-deductible contributions to a traditional IRA and then converting to a Roth.

Strategies to Maximize Your 2026 Savings

1. Set Up Automatic Escalation

If you're not already maxing out your 401(k), increase your contribution rate by at least 1-2% at the start of the year. Many employers offer automatic escalation features that gradually increase your savings rate over time.

2. Front-Load if You Can

If cash flow allows, consider front-loading your contributions early in the year. This gives your money more time in the market and ensures you hit your contribution target even if unexpected expenses arise later.

3. Don't Forget the Employer Match

The employer match doesn't count against your contribution limit. If your employer matches 4% of your salary, that's free money on top of the $24,500 you can contribute yourself. Make sure you're contributing enough to capture the full match.

4. Coordinate Across Accounts

If both spouses work and have access to workplace retirement plans, coordinate your strategies. A married couple can potentially shelter $49,000 in 401(k) contributions alone—$65,000 if both are 50+ and $71,500 if both qualify for the super catch-up.

5. Consider Roth vs. Traditional

The question of whether to make traditional (pre-tax) or Roth (after-tax) contributions depends on your current and expected future tax rates. Generally:

  • If you're in a high bracket now and expect to be in a lower bracket in retirement, traditional contributions make sense
  • If you're in a low bracket now or expect higher taxes in retirement, Roth contributions are often better
  • If you're uncertain, splitting between traditional and Roth provides tax diversification

Don't Overlook the IRA

Even if you have a 401(k), an IRA offers additional tax-advantaged savings capacity. The $7,500 limit may seem modest compared to 401(k) limits, but over a 30-year career, those contributions can grow to hundreds of thousands of dollars.

For those without access to a workplace plan, the IRA may be your primary retirement savings vehicle. Make funding it a priority.

The Power of Compound Growth

The real power of higher contribution limits becomes apparent over time. Consider a 35-year-old who increases their 401(k) contribution by just $1,000 annually thanks to the higher limit:

  • At a 7% annual return, that extra $1,000 per year grows to approximately $30,000 by age 65
  • If they continue the higher contribution rate for 30 years, the cumulative impact could exceed $100,000

That's the magic of compound growth—small additional contributions today can make a meaningful difference in retirement security decades from now.

The Bottom Line

The 2026 retirement contribution limits represent a genuine opportunity to accelerate your savings. Whether you're just starting out and trying to build good habits, in your peak earning years and finally able to save aggressively, or approaching retirement and looking to maximize your final working years, the higher limits work in your favor.

The best time to increase your retirement contributions is always now. Review your current contribution rate, calculate how much more you could save under the new limits, and make the adjustment. Your future self will thank you.