2026 IRA and 401(k) limits: $7,500, $24,500, catch-ups and the Roth income ranges

For 2026, you can contribute up to $7,500 to traditional and Roth IRAs combined, plus $1,100 if you're 50 or older. The employee deferral limit for 401(k), 403(b) and governmental 457(b) plans is $24,500, plus $8,000 at 50 or older, or $11,250 if you turn 60 to 63 this year. Employees whose prior-year FICA wages from the employer exceeded $150,000 must make those catch-ups as Roth starting in 2026. The figures come from IRS Notice 2025-67, released November 13, 2025. As of November 8, 2026, the IRS hasn't announced the 2027 limits.

IRAs: $7,500 a person, $8,600 at 50+

The limit: For 2026, traditional and Roth IRA contributions together are capped at $7,500 a person, up from $7,000 in 2025. The catch-up for people 50 or older by December 31 rises from $1,000 to $1,100, the first increase since SECURE 2.0 began indexing it, for a total of $8,600.

You need earned income: Contributions can't exceed your wages or net self-employment income for the year. Rent, interest, dividends, pensions and wages excluded under the foreign earned income exclusion don't count. On a joint return, a spouse without income can contribute to a spousal IRA based on the couple's combined earnings.

The deadline: Contributions for 2026 are due by April 15, 2027, and a filing extension doesn't extend that. For deposits between January 1 and April 15, tell the custodian which year they're for.

Roth IRA income ranges and traditional IRA deduction ranges

Roth IRAs: Eligibility phases out based on modified AGI. For 2026 the ranges are $153,000–$168,000 for single and head of household filers, $242,000–$252,000 for married filing jointly, and $0–$10,000 for married filing separately if you lived with your spouse at any time during the year. Above the top of the range, the backdoor Roth is the way in.

Traditional IRAs: Anyone with earned income can contribute, but if you're an active participant in a workplace plan (box 13 of your W-2 is checked), the deduction depends on income: for 2026, $81,000–$91,000 single and $129,000–$149,000 joint. If you aren't covered but your spouse is, the joint range is $242,000–$252,000. If neither of you is covered, the deduction is full at any income.

401(k), 403(b) and 457(b) plans: $24,500, with $72,000 in total

Employee deferrals: $24,500 for 2026, up from $23,500. The age-50 catch-up is $8,000 (was $7,500), for a personal maximum of $32,500.

The ages 60–63 super catch-up: If you turn 60, 61, 62 or 63 during the year, your catch-up is $11,250 instead of $8,000, for a personal maximum of $35,750. In the year you turn 64, it drops back to $8,000.

The total limit: Employee deferrals, employer matching and profit-sharing contributions and after-tax contributions together are capped at $72,000 for 2026 under §415(c), not counting catch-ups. If your plan allows after-tax contributions, that's the room for a mega backdoor Roth. The compensation limit used in plan formulas is $360,000.

SIMPLE and SEP IRAs

SIMPLE IRAs: The employee deferral limit is $17,000, or $18,100 for employers with 25 or fewer employees and for employers with 26 to 100 employees that elect higher employer contributions. The catch-up at 50+ is $4,000 ($3,850 in the $18,100 plans), and $5,250 at ages 60–63.

SEP-IRAs: Employer contributions only, up to 25% of compensation and no more than $72,000; for sole proprietors, it works out to about 20% of net earnings after half of self-employment tax. Eligible employees who earn more than $800 in 2026 must be included.

High earners' catch-ups must be Roth

The rule: Under SECURE 2.0, if your prior-year FICA wages from the employer (W-2 box 3) exceeded the threshold, your 401(k), 403(b) or governmental 457(b) catch-up contributions can only be Roth. For 2026 the test is whether your 2025 wages exceeded $150,000.

Status: The statute applies from 2026. The final regulations issued in September 2025 generally apply starting in 2027, and in 2026 plans follow a reasonable, good-faith interpretation. If a plan has no Roth option, higher-paid employees may not be able to make catch-ups at all.

Not affected: The $1,100 IRA catch-up, SEP-IRAs and SIMPLE IRAs aren't subject to this rule.

What it means for you: The catch-up dollars lose the current-year deduction but come out tax-free later if qualified. Check early in the year that your payroll has switched catch-ups to Roth.

When will the 2027 limits come out?

The IRS usually announces next year's retirement plan limits between late October and November. As of November 8, 2026, they haven't been released, and the tax year 2027 inflation adjustments published November 5 (Rev. Proc. 2026-35) don't include retirement account limits. Any 2027 numbers in the media are projections, so don't set payroll deferrals based on them until the official notice is out.

A few things to do before year-end

Check your 401(k) deferral rate: If you want to reach $24,500, figure out how much is left over your remaining paychecks. If you changed jobs, your deferrals at both employers together can't exceed $24,500, and any excess must come out by April 15 of next year.

The IRA can wait: You can fund a 2026 IRA until April 15, 2027, so you can decide between traditional and Roth, and whether it's deductible, once you know your income at tax time.

If you're doing a backdoor Roth: The conversion must be done by December 31, and pre-tax IRAs in your name need to be dealt with by year-end, because that's the date the pro-rata rule looks at.

For the full set of IRA rules, including choosing traditional or Roth, backdoor and mega backdoor Roths, conversions, early withdrawal exceptions, RMDs, inherited IRAs and cross-border status, see our guide to IRAs from first contribution to final withdrawal. To run your own numbers, book a free 15-minute call or add WeChat YCLUSA. YCL CPA doesn't sell financial products or manage investments; we get the tax right and the forms filed, and results depend on your facts and IRS rules.