The Internal Revenue Service has announced updated retirement contribution limits for 2026, giving workers new opportunities to accelerate their savings. The headline change: the 401(k) contribution limit has increased to $24,500, up from $23,500 in 2025—an extra $1,000 that long-term investors can put to work.

But the updates extend far beyond the basic limit, with significant changes to catch-up contributions, IRA thresholds, and rules affecting high earners. Here's your complete guide to maximizing retirement savings in 2026.

The New 401(k) Limits

For employees participating in 401(k), 403(b), and most 457(b) plans, the key numbers for 2026 are:

  • Employee contribution limit: $24,500 (up from $23,500)
  • Total contribution limit (employee + employer): $72,000 (up from $70,000)
  • Catch-up contribution (age 50+): $8,000 (up from $7,500)

Workers aged 50 and older can therefore contribute up to $32,500 in 2026—a substantial sum that can significantly accelerate retirement readiness.

The Super Catch-Up for Ages 60-63

A provision from the SECURE 2.0 Act creates an enhanced catch-up opportunity for workers in a specific age window. Those aged 60, 61, 62, or 63 can make catch-up contributions of $11,250 instead of the standard $8,000, allowing total contributions of up to $35,750.

This "super catch-up" recognizes that workers in their early 60s are often at peak earning years while approaching retirement, making accelerated savings particularly valuable. The enhanced limit applies only to these four ages—once a worker turns 64, the standard catch-up limit resumes.

IRA Contribution Limits

Traditional and Roth IRA contribution limits remain unchanged at $7,500 for 2026, with an additional $1,100 catch-up contribution available for those 50 and older, bringing the total to $8,600.

The income phase-out ranges for Roth IRA contributions have increased:

  • Single filers: $153,000 to $168,000 (up from $150,000-$165,000)
  • Married filing jointly: $242,000 to $252,000 (up from $236,000-$246,000)

These higher thresholds allow more middle- and upper-middle-income workers to take advantage of Roth IRA tax benefits.

Changes for High Earners

Beginning in 2026, employees earning more than $150,000 in FICA wages must make all catch-up contributions on a Roth basis. This change, also from SECURE 2.0, means high earners will pay taxes on catch-up contributions now rather than in retirement.

While this reduces the immediate tax benefit of catch-up contributions, the Roth treatment provides tax-free growth and withdrawals in retirement—potentially a better deal for those expecting to remain in high tax brackets.

SIMPLE and SEP IRAs

Small business owners and self-employed workers have their own updated limits:

  • SIMPLE IRA: $17,000 (up from $16,500), with $4,000 catch-up (up from $3,500)
  • SEP IRA: $72,000 (up from $70,000)

The SEP IRA limit, in particular, offers tremendous savings potential for self-employed individuals with strong income years.

Strategies to Maximize Your Contributions

With higher limits available, consider these approaches to optimize your retirement savings:

Front-load your contributions. If cash flow permits, maximize contributions early in the year to give your money more time to grow. Some plans allow you to specify a high contribution percentage that declines once you hit the limit.

Capture the full employer match. Many plans require contributions throughout the year to receive the full employer match. Check your plan's matching formula before front-loading to avoid leaving free money on the table.

Consider Roth vs. traditional. With tax rates relatively low by historical standards, Roth contributions may be attractive for workers who expect to be in similar or higher brackets in retirement.

Don't forget the backdoor Roth. High earners above the Roth IRA income limits can still contribute through a backdoor strategy: make non-deductible traditional IRA contributions, then convert to Roth.

The Bottom Line

The 2026 contribution limit increases may seem modest, but the power of compound growth means that extra $1,000 in annual contributions can add tens of thousands of dollars to your retirement nest egg over a career.

For a 35-year-old maximizing contributions through retirement, the cumulative impact of these higher limits—assuming 7% annual returns—could exceed $100,000 in additional retirement wealth. That's a compelling reason to revisit your contribution rate and ensure you're taking full advantage of the opportunities the new limits provide.