The new year brings welcome news for retirement savers: higher contribution limits across all major tax-advantaged accounts. The IRS announced that 401(k) contribution limits will rise to $24,500 for 2026, up from $23,500 in 2025. IRA limits increase to $7,500 from $7,000. And a powerful new "super catch-up" provision could allow workers in their early 60s to save dramatically more.

These increases matter more than many realize. The difference between contributing the maximum each year versus leaving money on the table compounds dramatically over a career. Understanding and utilizing these limits is one of the most important financial decisions you can make.

The New 2026 Limits at a Glance

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

  • Employee contribution limit: $24,500 (up $1,000 from 2025)
  • Catch-up contribution (age 50+): $8,000
  • Super catch-up (ages 60-63): $11,250
  • Total employee limit (age 60-63): $35,750
  • Combined employee + employer limit: $72,000

Traditional and Roth IRAs:

  • Annual contribution limit: $7,500 (up $500 from 2025)
  • Catch-up contribution (age 50+): $1,100 (up $100 from 2025)
  • Total limit (age 50+): $8,600

SIMPLE IRAs:

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

The Super Catch-Up: A Game-Changer for Workers 60-63

One of the most significant changes for 2026 comes from the SECURE 2.0 Act of 2022, which is now fully implemented. Workers aged 60, 61, 62, and 63 can make enhanced catch-up contributions of $11,250—substantially more than the $8,000 standard catch-up for those 50 and older.

This means eligible workers can contribute up to $35,750 to their 401(k) in 2026:

  • Base contribution: $24,500
  • Super catch-up: $11,250
  • Total: $35,750

Note that this enhanced catch-up only applies to ages 60-63. At age 64, you return to the standard $8,000 catch-up (for a total of $32,500).

"The super catch-up is designed to help people in the final stretch before retirement make up for lost time," said Ed Slott, a retirement planning expert. "If you're in this age window and can afford it, this is an extraordinary opportunity to boost your nest egg."

Roth IRA Income Phase-Outs for 2026

Not everyone can contribute directly to a Roth IRA. The ability to contribute phases out at higher income levels:

Single and Head of Household Filers:

  • Full contribution allowed: AGI under $153,000
  • Partial contribution: AGI $153,000 - $168,000
  • No direct contribution: AGI above $168,000

Married Filing Jointly:

  • Full contribution allowed: AGI under $242,000
  • Partial contribution: AGI $242,000 - $252,000
  • No direct contribution: AGI above $252,000

High earners who exceed these limits can still use the "backdoor Roth" strategy: contribute to a traditional IRA (non-deductible) and immediately convert to a Roth. This remains legal and widely used, though it adds complexity.

The New Roth Catch-Up Requirement for High Earners

SECURE 2.0 included a provision that takes full effect in 2026: if your prior-year wages exceeded $150,000 from a single employer, any catch-up contributions must go into a Roth (after-tax) account rather than a traditional (pre-tax) account.

This means:

  • Your base $24,500 contribution can be either traditional or Roth
  • If you earned over $150,000 in 2025, your 2026 catch-up must be Roth
  • You lose the immediate tax deduction but gain tax-free growth and withdrawals

Not all 401(k) plans offer Roth options. If your plan doesn't, you may be unable to make catch-up contributions at all under this rule. Check with your HR department to understand your plan's capabilities.

Maximizing Your Contributions: A Strategic Approach

Reaching the maximum contribution limits requires planning. Here's a framework for prioritizing your retirement savings:

Step 1: Capture the full employer match

If your employer offers matching contributions, this is free money. Contribute at least enough to get the full match before allocating elsewhere.

Step 2: Max out your HSA (if eligible)

Health Savings Accounts offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. The 2026 limits are $4,300 for individuals and $8,550 for families.

Step 3: Consider a Roth IRA

If you're under the income limits, a Roth IRA provides tax diversification. You pay taxes now but withdrawals in retirement are tax-free.

Step 4: Max out your 401(k)

After capturing the match and funding other accounts, work toward the $24,500 limit (plus catch-up if eligible).

Step 5: After-tax 401(k) contributions

Some plans allow contributions beyond the $24,500 limit, up to the $72,000 combined limit. These can often be converted to Roth through a "mega backdoor Roth" strategy.

The Power of Maxing Out: A Long-Term View

The difference between contributing the maximum versus a more modest amount compounds dramatically over time. Consider this comparison for a 30-year-old contributing for 35 years with 7% average returns:

  • $10,000/year: Grows to approximately $1.38 million by age 65
  • $24,500/year (max): Grows to approximately $3.38 million by age 65
  • Difference: $2 million in additional retirement wealth

Of course, not everyone can immediately contribute the maximum. The key is to increase contributions gradually—even 1% more per year makes a meaningful difference over time.

Common Mistakes to Avoid

Not adjusting for the new limits: If you set a fixed dollar contribution in 2025, it won't automatically increase to the 2026 maximum. Log into your benefits portal and update your elections.

Forgetting about IRAs: Many workers max out their 401(k) but neglect IRA contributions. The $7,500 IRA limit is separate and additional.

Missing the super catch-up window: The enhanced catch-up only applies ages 60-63. Workers turning 64 lose access to the higher limit.

Ignoring the Roth option: Tax diversification matters in retirement. Consider splitting contributions between traditional and Roth if your plan allows.

Contributing too late in the year: Front-loading contributions early in the year gives your money more time to grow. Consider increasing early-year contributions if cash flow allows.

The Bottom Line

The 2026 retirement contribution limits represent a meaningful opportunity to accelerate your savings. Whether you're just starting out, in your peak earning years, or approaching retirement, understanding and utilizing these limits is crucial to long-term financial security. The new super catch-up provision is particularly valuable for workers aged 60-63, offering a chance to add up to $35,750 per year to a 401(k). Take time now to review your contribution elections and make adjustments to capture the full benefit of these tax-advantaged savings opportunities.