2026 Contribution Limits

The contribution limits shown above reflect maximum allowable amounts, but the real planning value comes from understanding which limits stack, which replace each other, and which are income-dependent.
Below are the most important rules clients and business owners need to understand when applying the 2026 limits in real financial planning.

401(k), 403(b), TSP and 457(b) Contribution Rules for 2026

Employee Deferral Limits

• Base employee deferral: $24,500

• Age 50+ catch-up: $8,000

• Age 60–63 super catch-up: $11,250

Important:
Only one catch-up applies. The age 60–63 super catch-up replaces the standard age-50 catch-up, it does not stack.

Total Contribution Limits (Employee + Employer)

• Under age 50: $72,000

• Age 50+: $80,000

• Age 60–63: $83,250

Employer match, profit-sharing, and non-elective contributions all count toward these totals.

Additional SECURE 2.0 Note (Important):
For tax years beginning in 2026, catch-up contributions must be made as Roth contributions for employees whose prior-year wages from the employer exceeded $145,000 (indexed for inflation).

• This rule applies per individual, not per household.

• It does not apply to self-employed individuals without FICA wages.

• If wages are below the threshold, catch-ups may still be pre-tax or Roth, depending on plan design.

Traditional IRA Contribution and Deduction Limits (2026)

Contribution Limits

• Regular contribution: $7,500

• Age 50+ catch-up: $1,100

• Total (age 50+): $8,600

Income Limits for Deductibility

If you ARE covered by a workplace retirement plan:

• Single / Head of Household

  • Full deduction: MAGI ≤ $81,000

  • Partial deduction: $81,000 – $91,000

  • No deduction: ≥ $91,000

• Married Filing Jointly

  • Full deduction: MAGI ≤ $129,000

  • Partial deduction: $129,000 – $149,000

  • No deduction: ≥ $149,000

If you are NOT covered, but your spouse IS:

• Full deduction up to $242,000

• Phase-out above that level

Roth IRA Contribution Income Limits (2026)

Contribution Limits

Same dollar limits as Traditional IRAs:

• $7,500 (plus $1,100 catch-up if age 50+)

Income Phase-Out Ranges

Income Phase-Out Ranges

• Married Filing Jointly

  • Full contribution: MAGI ≤ $242,000

  • Partial: $242,000 – $252,000

  • No direct Roth contribution: ≥ $252,000

• Single / Head of Household

  • Full contribution: MAGI ≤ $153,000

  • Partial: $153,000 – $168,000

  • No direct Roth contribution: ≥ $168,000

• Married Filing Separately

  • Partial contribution: MAGI $0 – $10,000

  • No contribution above $10,000

Note:
These limits apply only to direct Roth IRA contributions, not Roth conversions.

SEP IRA Contribution Rules for Business Owners

• Maximum contribution: 25% of compensation

• Absolute dollar cap: $72,000

• Compensation limit: $360,000

For sole proprietors and partners, the IRS shortcut formula applies:

Maximum SEP contribution = Net earnings × 20%

Income above $360,000 is ignored for SEP calculations, even though the contribution cap is lower.

SIMPLE IRA Contribution Rules (2026)

Employee Deferrals

• Base deferral: $17,000

• Age 50+ catch-up: $3,500

• Total employee deferral (50+): $20,500

Employer Contributions (Required)

• 3% matching contribution or

• 2% non-elective contribution

Employer contributions are in addition to employee deferrals.

SIMPLE IRAs do not allow Roth contributions.

Need Help Applying These Limits to Your Situation?

Contribution limits are easy to list.
Optimizing them across taxes, cash flow, and long-term planning is not.

If you want help coordinating:

• Employer plans and IRAs

• Roth vs pre-tax strategies

• Business owner retirement plans

• SECURE 2.0 changes

Schedule a call with Sierra Hotel Financial: