2026 Retirement Savings Changes

1. Higher Contribution Limits for 401(k) Plans

Employee elective deferral limit:

• $24,500     for 2026 (up from $23,500 in 2025). 

This applies to most workplace plans, including 401(k), 403(b), and governmental 457(b).  

2. Catch-Up Contributions (50+) Increase

For savers aged 50 and older:

• Standard catch-up limit becomes $8,000 (up from      $7,500). 
• That means the total possible contribution for those 50+ can be up to $32,500 (employee deferral + catch-up). 

For savers aged 60–63(“super” catch-up):

• The special higher limit remains $11,250, so total possible is $35,750 in 2026. 

3. Mandatory Roth Catch-Up for High Earners (SECURE 2.0)

Starting in 2026, if you’re eligible for catch-up contributions and your prior year Social Security wages exceed a threshold (about ~$150,000 indexed):

• Your catch-up contributions must be made as Roth (after-tax) rather than traditional pre-tax.
• If your employer’s  plan doesn’t offer a Roth option for catch-ups, you may not     be able to make them.

The IRS annually adjusts these limits based on inflation, and it’s expected that for 2026, both Traditional and Roth IRA limits will increase again.

• Proposed Contribution Limit: The contribution limit for Traditional and Roth IRAs could rise to $8,000 (up from $7,500 in 2025).
   
• Catch-Up Contribution: The catch-up contribution limit for people 50 or older is expected to increase to $1,200, making the total contribution limit for those 50+ approximately $9,200.
   

The income limits for Roth IRA contributions also rise each year to reflect inflation.

• Proposed Single Filers: The phase-out range for Roth IRA contributions could increase to $160,000–$175,000 (up from $153,000–$168,000 in 2025).
   
• Proposed Married Filing Jointly: The phase-out range could rise to $240,000–$260,000 (up from $228,000–$248,000 in 2025).
   

The income limits for deductibility of Traditional IRA contributions will likely rise as well:

• Proposed Single Filers: The phase-out range for deductibility could be $85,000–$100,000 (up from $77,000–$92,000 in 2025).
   
• Proposed Married Filing Jointly: The phase-out range could rise to $140,000–$160,000 (up from $128,000–$148,000 in 2025).
  

Self-employed individuals and small business owners who use SEP IRAs and SIMPLE IRAs may see the following proposed changes:

• SEP IRA: The limit for SEP IRA contributions could increase to $70,000 (up from $66,000 in 2025).
   
• SIMPLE IRA: The contribution limit for SIMPLE IRAs could increase to $17,000 (up from $16,000 in 2025), with catch-up contributions potentially rising to $20,500 for those 50+ (up from $19,000).