The IRS announced 2026 cost-of-living adjustments on November 13, 2025, and nearly every retirement limit moved up. The 401(k) elective deferral limit rises to $24,500, the IRA limit rises to $7,500, and the total 401(k) annual additions cap reaches $72,000. The 401(k) catch-up rises for the first time since 2023, the IRA catch-up rises for only the second time ever, and a new SECURE 2.0 rule changes how high earners make catch-ups. Here is every number that matters, with 2025 comparisons.

2026 limits at a glance

All figures from IRS IR-2025-111 and IRS Notice 2025-67, except HSA figures from Rev. Proc. 2025-19.

401(k) and catch-up contributions

The headline change: elective deferrals rise $1,000 to $24,500. The standard catch-up for workers 50 and older rises to $8,000, so participants 50+ can contribute $32,500 total. The special SECURE 2.0 catch-up for workers who turn 60, 61, 62, or 63 during 2026 stays at $11,250.

The bigger structural change is the Roth catch-up mandate. Under SECURE 2.0, if your 2025 Social Security (FICA) wages from the employer sponsoring your plan exceeded $150,000, any 2026 catch-up contributions to that plan must be Roth. If the plan has no Roth option, you cannot make catch-ups in it. Self-employed people with no FICA wages from the sponsor are not subject to the rule. (IRS Notice 2025-67) This is the first year the mandate takes effect, and payroll systems should now be enforcing it. If you earned over $150,000 in 2025 and are 50+, expect your catch-ups to land in Roth.

The total annual additions limit, which caps employee deferrals plus employer contributions plus after-tax contributions combined, rises to $72,000. If your plan permits after-tax contributions and in-plan Roth conversions or in-service withdrawals, the room between your deferrals plus employer contributions and the $72,000 cap can be used for a mega backdoor Roth. Many plans do not allow this, and nondiscrimination (ACP) testing can limit highly compensated employees.

IRA limits and phase-outs

The IRA contribution limit rises $500 to $7,500, with the 50+ catch-up rising to $1,100 (total $8,600). The income phase-outs that determine who can use these accounts directly also moved:

• Roth IRA contributions phase out between $153,000 and $168,000 for single filers (was $150,000-$165,000), and between $242,000 and $252,000 for joint filers (was $236,000-$246,000). (IRS IR-2025-111)

• Traditional IRA deduction (when covered by a workplace plan) phases out between $81,000 and $91,000 for single filers (was $79,000-$89,000), and between $129,000 and $149,000 for joint filers (was $126,000-$146,000).

Above those ranges, the backdoor Roth IRA remains the route into Roth dollars.

Solo 401(k), SEP, and SIMPLE for business owners

• Solo 401(k): same limits as any 401(k). Elective deferrals up to $24,500 as the employee, plus employer profit-sharing up to 25% of W-2 compensation (for sole proprietors and partners, effectively about 20% of net self-employment earnings after the SE-tax deduction), with total contributions capped at $72,000 per participant before catch-ups ($80,000 at 50+, $83,250 at ages 60-63). The elective deferral limit applies per person across all 401(k)s if you also hold a W-2 job. (IRS, One-Participant 401(k) Plans)

• SEP IRA: employer contributions only, capped at the lesser of 25% of the employee's compensation or $72,000 for 2026. The minimum compensation to include an employee rises to $800 (IRS Notice 2025-67). (IRS, SEP Contribution Limits)

• **SIMPLE IRA: employee contributions rise to $17,000 ($18,100 in 'applicable' SIMPLE plans, generally employers with 25 or fewer employees or those that elect the higher limit), with the 50+ catch-up rising to $4,000. The ages 60-63 catch-up stays at $5,250. (IRS IR-2025-111)

HSA limits

For 2026, HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage, up from $4,300 and $8,550. (Rev. Proc. 2025-19) To qualify, the high-deductible health plan must have a minimum deductible of $1,700 (self-only) or $3,400 (family), with maximum out-of-pocket expenses of $8,500 and $17,000 respectively. Starting in 2026, the One Big Beautiful Bill Act also treats Exchange bronze and catastrophic plans as HSA-compatible, and allows HSA contributions alongside certain direct primary care arrangements. The $1,000 catch-up for HSA holders 55 and older is fixed by statute and does not change.

Other 2026 figures worth knowing

• Annual compensation limit for plan purposes: $360,000 (was $350,000).

• Highly compensated employee threshold: $160,000 (unchanged).

• Key employee threshold for top-heavy plans: $235,000 (was $230,000).

• Qualified charitable distributions from IRAs: up to $111,000 excludable (was $108,000).

• Defined benefit plan maximum annual benefit: $290,000 (was $280,000).

Deadlines to put on the calendar

• 401(k) elective deferrals: must come out of 2026 paychecks; the December 31 payroll cutoff is the real deadline.

• IRA contributions for 2026: due by the tax filing deadline, generally April 15, 2027.

• SEP contributions for 2026: due by the employer's tax filing deadline including extensions.

• **Solo 401(k) employee deferrals: for an existing plan, elect them by December 31, 2026 and deposit them by the tax filing deadline including extensions. A sole proprietor with no employees who first adopts a plan after year-end (by the filing deadline, without extensions) can still make first-year deferrals for 2026 under SECURE 2.0. Employer contributions can wait until the business tax filing deadline with extensions.

Pending review by Brian Thomas, EA. Updated September 25, 2026.

This article is free educational content, not tax advice for your specific situation. If you want a plan built around your actual numbers, that is what our paid tax planning engagements do.