The IRS announced that Americans can contribute up to $24,500 to their 401(k) accounts in 2026—a $1,000 increase from 2025's $23,500 limit. For retirement savers, this represents another opportunity to accelerate wealth building in tax-advantaged accounts.
The annual adjustment, which reflects inflation, affects millions of workers participating in employer-sponsored retirement plans.
Key 2026 Limits at a Glance
401(k), 403(b), and Similar Plans
- Standard contribution limit: $24,500 (up from $23,500)
- Catch-up contribution (age 50+): $8,000 (up from $7,500)
- Total for 50+ workers: $32,500
- Super catch-up (ages 60-63): $11,250
- Total for ages 60-63: $35,750
IRAs (Traditional and Roth)
- Standard contribution limit: $7,500 (up from $7,000)
- Catch-up contribution (age 50+): $1,100 (up from $1,000)
- Total for 50+ savers: $8,600
SIMPLE Plans
- Standard limit: $17,000 (up from $16,500)
- Catch-up (age 50+): $4,000 (up from $3,500)
The Super Catch-Up: A SECURE 2.0 Bonus
One of the most valuable provisions from the SECURE 2.0 Act is the "super catch-up" for workers aged 60-63. This group can contribute an additional $11,250 on top of the standard limit—significantly more than the regular catch-up amount.
Why ages 60-63? Congress recognized this is a critical period for retirement preparation, when workers often have higher incomes and children leaving the household.
For someone age 62 maxing out contributions in 2026:
- Standard contribution: $24,500
- Super catch-up: $11,250
- Total: $35,750
With employer matching (which doesn't count against these limits), total annual retirement contributions can exceed $70,000.
The Math That Matters
How much difference does $1,000 more in contributions make? Consider a 35-year-old who increases their annual 401(k) contribution from $23,500 to $24,500:
- Additional contribution: $1,000/year
- Years until retirement (65): 30
- Assumed return: 7% annually
- Extra wealth at retirement: ~$101,000
That's the power of compound growth on tax-deferred savings. Each incremental dollar saved early in your career multiplies significantly by retirement.
Tax Benefits Explained
Higher limits mean more tax advantages:
Traditional 401(k): Contributions reduce your taxable income today. A worker in the 24% bracket contributing an extra $1,000 saves $240 in current-year taxes.
Roth 401(k): Contributions are after-tax, but all future growth and withdrawals are tax-free. Particularly valuable if you expect higher tax rates in retirement.
Traditional IRA: Similar to traditional 401(k), with income limits on deductibility if you also have a workplace plan.
Roth IRA: After-tax contributions, tax-free growth. Income limits apply.
Action Items for 2026
To maximize the higher limits:
- Update your contribution percentage: If you're contributing a fixed percentage, check if it still maxes out under the new limits
- Front-load if possible: Contributing early in the year gives more time for tax-free growth
- Don't forget employer matching: Contribute at least enough to capture the full match—it's free money
- Consider catch-up contributions: If you're 50+ and haven't been using catch-up provisions, start now
- Check ages 60-63 eligibility: The super catch-up is use-it-or-lose-it for each year you're in the window
Other Notable 2026 Changes
Additional retirement-related limits for 2026:
- Defined contribution total limit: $72,000 (employee + employer contributions)
- Annual compensation cap: $360,000
- Highly compensated employee threshold: $160,000
The Bigger Picture
Retirement saving in tax-advantaged accounts remains one of the most powerful wealth-building tools available to everyday investors. The combination of tax benefits, employer matching, and compound growth creates mathematical advantages difficult to replicate elsewhere.
The 2026 limit increases aren't dramatic, but they continue a pattern of gradually higher caps that allow savers to shelter more income from taxes. For workers who can afford to max out contributions, these limits represent an expanding opportunity.
For those who can't yet max out, the higher limits serve as a reminder of the goal—and motivation to increase savings rates over time. Every dollar contributed today is worth multiples in retirement decades from now.
