2026 401(k) Contribution Limits, How Much Can You Save for Retirement

The Internal Revenue Service (IRS) released the official retirement plan contribution limits for 2026 on November 13, marking a significant increase across the board for most savers. The new figures, detailed in IR-2025-111 and Notice 2025-67, deliver the largest hike in 401(k) limits in three years but introduce a mandatory Roth contribution rule that will sting high-earning Baby Boomers nearing retirement.

The changes reflect annual cost-of-living adjustments and take effect on January 1, 2026.

Key 2026 Retirement Contribution Limits

Category

2025 Limit

2026 Limit

Change

401(k)/403(b)/TSP Employee Deferral

$23,500

$24,500

+$1,000

Standard Catch-up (Age 50+)

$7,500

$8,000

+$500

Traditional/Roth IRA Contribution

$7,000

$7,500

+$500

IRA Catch-up (Age 50+)

$1,000

$1,100

+$100

Total Annual Additions (401(k) Employee + Employer)

$70,000

$72,000

+$2,000

SECURE 2.0 Super Catch-up (Ages 60–63)

$11,250

$11,250

$0

Most employees under age 60 can now defer up to $32,500 into their 401(k) plans (the $24,500 base deferral plus the $8,000 catch-up), a clean $1,500 increase over 2025. This means the benefit of dollar-cost averaging into a retirement account just got $1,000 more powerful per year. The increase in the total annual additions limit to $72,000 is also a boon for participants utilizing a "Mega Backdoor Roth" strategy, making one of the best legal tax arbitrages slightly sweeter.

The SECURE 2.0 Roth Catch-Up Mandate Is Now Law

The most impactful change for the highest earners is the activation of the SECURE 2.0 catch-up contribution mandate, which Congress attempted to delay multiple times.

Starting in 2026, if an employee’s 2025 Medicare wages (Box 5 on Form W-2) exceeded $145,000, their entire 2026 catch-up contribution — whether the $8,000 standard catch-up or the $11,250 "super" catch-up — must be made to the Roth (after-tax) side of the plan.

This marks the end of pre-tax catch-up contributions for six- and seven-figure earners, triggering an immediate tax liability at today's marginal rate in exchange for tax-free growth forever. For a 62-year-old earning $250,000 in the 37% federal income tax bracket who utilizes the maximum $11,250 catch-up contribution, the immediate tax bill will be approximately $4,200 in 2026. Over 20 years, however, that upfront tax hit could translate to $300,000 to $500,000 in tax-free retirement savings. Plan sponsors without in-plan Roth conversions or after-tax contribution features will likely face participant backlash starting in January.

A Glaring Exception: The Frozen 'Super Catch-Up'

While most limits saw inflationary increases, the special $11,250 "super catch-up" contribution limit for employees aged 60 through 63 was frozen at the 2025 level, disappointing analysts and savers who projected an increase to $12,000 or more.

This cohort—high-earning Boomers in their peak savings years—is being hit with a double penalty: no increase in their maximum savings power combined with a forced immediate tax liability on their catch-up contributions. The frozen super catch-up combined with the mandatory Roth taxation means this group is limited to a total deferral ceiling of $35,750, instead of the $36,500-plus many analysts projected. Experts anticipate this combination could lead to a behavioral shift, potentially pushing some high-earning 60-to-63-year-olds to park savings in taxable brokerage accounts instead of their employer plans, a shift worth watching.

Bottom Line for Savers

2026 is a solid win for most retirement investors: the biggest 401(k) bump in three years, a nice IRA boost, and inflation protection doing its job. However, for the exact cohort that needs to save the most—high-earning 60-to-63-year-olds—the IRS just took away the carrot (no super catch-up increase) and added a stick (mandatory Roth taxation). If you are in that group, it is crucial to run the numbers now. For everyone else, it's time to bump your payroll percentage in January and thank the CPI-U for the extra grand.

Disclaimer: This article is for informational purposes only and is not intended as financial or tax advice. The contribution limits and income thresholds are for tax year 2024 and are subject to change. Please consult with a qualified financial professional or tax advisor before making any investment decisions.