The IRS recently announced key contribution limit changes for 2026 for IRAs, Roth IRAs, employee-sponsored plans, and Health Savings Accounts (HSAs). While the increased IRS contribution limits are helpful, they are largely incremental. They reflect cost-of-living adjustments rather than wholesale reform.
The broader opportunity still lies in your consistent contributions and in ensuring you’re using the available vehicles fully, rather than just hitting the new ceiling. With that said, here’s a summary of key items to consider as you begin planning for the new year.
Key Takeaways
- Maximizing opportunities: If you are not already contributing up to the new limits (or planning to), now may be a good time to review your payroll elections or IRA contributions for the coming year. For example, bumping up an IRA contribution from $7,000 to $7,500 (if possible) or adjusting 401(k) deferrals toward the new $24,500 cap.
- Catch-up timing matters: For those age 50+, the higher catch-up limits (especially ages 60-63) provide extra room to accelerate savings. If you’re approaching that age range, consider how much you want to allocate to catch-up contributions.
- Plan sponsor/employer considerations: Employers and plan administrators will need to update plan documents, payroll systems, and participant communications to reflect the new limits and the new Roth-catch-up rule. If you’re an employee, check with your plan administrator or HR department to ensure your plan is aligned for 2026.
- Check employer plan eligibility: For example, the “super catch-up” (ages 60-63) may be optional for some employer plans. The Roth catch-up rule for high earners also depends on whether the plan offers a Roth option; if not, high earners may be restricted from making catch-up contributions.
Details of the IRS contribution limits and income thresholds for specific categories are outlined below for your reference. As always, please consult a financial or tax advisor as appropriate for your individual situation.
IRAs and Roth IRAs
IRS Contribution Limits
- For 2026, the maximum annual contribution to a traditional IRA or a Roth IRA rises to $7,500, up from $7,000 in 2025.
- For individuals aged 50 or older, the catch-up contribution amount increases to $1,100, up from $1,000 in 2025.
Income phase-out ranges (for determining eligibility/deductibility)
- For traditional IRA deductibility (covered by a workplace plan):
- Single filers: phase-out range is now $81,000 to $91,000 (up from $79,000 to $89,000).
- Married filing jointly (and the contributor is covered by an employer-sponsored plan): $129,000 to $149,000 (up from $126,000 to $146,000).
- For Roth IRA contribution eligibility:
- Single or head of household: phase-out range is now $153,000 to $168,000 (up from $150,000 to $165,000).
- Married filing jointly: range is now $242,000 to $252,000 (up from $236,000 to $246,000).
Employer-Sponsored Plans
IRS contribution limits
- The employee elective deferral limit (for contributions to most 401(k) / 403(b) / 457(b) plans) is increased to $24,500 for 2026, up from $23,500 in 2025.
Catch-up contributions for those age 50+
- The standard catch-up contribution (age 50 and older) rises to $8,000 for 2026, up from $7,500 in 2025.
- For participants aged 60-63, the “super catch-up” limit remains $11,250 for 2026 (unchanged from 2025).
- Thus, for a 50+ participant (under 60), total possible contributions in 2026 could reach $32,500 (i.e., $24,500 + $8,000) under many plans.
- For participants aged 60-63, potentially up to $35,750 (i.e., $24,500 + $11,250).
Special rule for high-income earners (Roth catch-up)
Beginning January 1, 2026, a new rule under the SECURE 2.0 Act of 2022 requires that if a participant is age 50+ and had wages subject to Social Security (Box 3 on Form W-2) of more than $150,000 (for 2025 wages; the threshold is indexed) from that employer, then any catch-up contributions they make in 2026 must be designated as Roth (after-tax) contributions. As an employee, you may make pre-tax elective deferrals up to the standard limit ($24,500), but the catch-up portion must be in a Roth account.
- This means high-wage older workers need to confirm their plan offers a Roth option and understand the tax implications of making catch-ups as Roth.
SIMPLE plan limits
- For SIMPLE 401(k) or SIMPLE IRA plans, the IRS increased the limit for 2026 deferrals to $17,000 (from $16,500).
- The catch-up contribution for age 50+ in SIMPLE plans is $4,000 for 2026 (up from $3,500).
Health Savings Accounts (HSAs) & High-Deductible Health Plans (HDHPs)
HSA contribution limits
- For 2026, the HSA contribution limit is $4,400 for self-only coverage (up from $4,300 in 2025).
- For family coverage, the limit is $8,750 (up from $8,550).
- The catch-up contribution for those age 55 or older remains $1,000.
HDHP minimum deductibles and out-of-pocket limits
- Minimum annual deductible for self-only coverage: increases to $1,700 (from $1,650).
- For family coverage: minimum deductible increases to $3,400 (from $3,300).
- Maximum out-of-pocket (OOP) limit for self-only: $8,500 (up from $8,300).
- For family coverage: OOP limit rises to $17,000 (from $16,600).
The Bottom Line
The 2026 limit updates provide a modest but meaningful lift in tax-advantaged savings opportunities across multiple account types. For savers — particularly those in or approaching peak earning years — the higher limits and special rules (e.g., Roth catch-ups for high earners) underscore the importance of reviewing your savings strategy and tax planning in light of the changes.
If you need help maximizing your investment opportunities, connect with us today to discuss how we can best allocate your investments for your situation.
Please consult with your financial advisor and/or tax professional to determine the suitability of these strategies. All views, expressions, and opinions in this communication are subject to change. This communication is not an offer or solicitation to buy, hold, or sell any financial instrument or investment advisory services.