Every year, the IRS updates how much you are allowed to invest in different retirement savings vehicles. With 2026 underway, the IRS has released new figures for the year. Read what they are and important considerations below.
IRA Contribution Limits
Traditional IRA contribution limits for folks under the age of 50 are $7,500. If you are 50 or older, you can make catch-up contributions in addition to your regular contribution in the amount of $1,100, for a total of $8,600. These limits are the same for Roth IRAs as well, with the caveat that high earners gradually lose the ability to invest in Roth IRAs.
High earners are subject to a Roth IRA phaseout starting once their Modified Adjusted Growth Income (MAGI) surpasses $153,000 (for singles and heads of household) or $242,000 (for married filing jointly). High earners lose their ability to contribute to Roth IRAs completely once their MAGI surpasses $168,000 (for singles and heads of households) or $252,000 (for married filing jointly).
What is MAGI? It is a person’s earned income minus all their relevant deductions but then with some things added back in. It’s a complicated calculation, but the easiest place to find yours is line 11 on your 1040.
Employer-Sponsored Retirement Accounts
For people saving through their work accounts—401(k)s, 403(b)s, 457s and the like—everyone can save at least $24,500 in them for 2026. Just like with IRAs, those 50 and older are allowed to contribute more as catch-ups, with the catch-up limit in 2026 coming in at $8,000 for a total of $32,500.
But wait… just like the TV commercials… there’s more. Those workers aged 60-63 get a super catch-up and can contribute another $3,250 on top of the $8,000, for a grand total of $35,750 in employer-sponsored retirement account contributions.
However, keep in mind that the government really likes to make things fun for high earners. If a worker earns more than $150,000 in Social Security wages (that’s different than MAGI, that’s line 3 on a W2), any catch-up contributions must be made to the Roth portion of their employer-sponsored plan. No Roth portion? No making catch-up contributions.
SIMPLE Accounts
Never in the history of the English language has “simple” been more complicated. Those saving through a SIMPLE IRA provided by their employer saw their contribution limit rise by $500 from 2025 to $17,000 for 2026. Those employees over 50 get a catch-up boost of $4,000 bringing the total to $21,000, and those employees between the ages of 60-63 get an additional $1,250 bringing the total up to $22,250.
However, that’s for companies with more than 25 employees. If a worker is employed by a small company with fewer than 25 employees, the limits change. Those under 50 can contribute $18,100 (that’s $1,100 more than their big company compatriots). Those over the age of 50 get a catch-up of only $3,850 (which is $150 less than their big company kin). And those 60-63 making a super catch-up can contribute $5,250 (which is $4,000 more than the larger company folks can).
All totaled, the key takeways for SIMPLE plans is 1) they aren’t simple and 2) you should keep a sharp eye on your limits if your employer has one.