Retirement Contribution Limits 2026: 401(k), IRA, and Catch-Up Amounts
Key takeaways
- For 2026 you can contribute up to $24,500 to a 401(k) and up to $7,500 to an IRA (traditional or Roth combined).
- At age 50 and over, you can add a $8,000 catch-up to a 401(k) (up to $32,500 total) and a $1,100 catch-up to an IRA (up to $8,600 total).
- From ages 60 to 63 a higher 401(k) catch-up of $11,250 applies instead of $8,000, under the SECURE 2.0 law.
- Your employer's matching contributions do not count toward your $24,500 employee limit, so the match is genuinely extra.
- Contribution limits change every year, so check the current IRS figures, and fix any over-contribution quickly to avoid a penalty.
For the 2026 tax year you can contribute up to $24,500 to a 401(k) and up to $7,500 to an IRA, with extra catch-up contributions once you turn 50. These limits are set by the IRS, they change most years, and they matter because the tax advantages only apply up to the cap. This guide covers the 2026 numbers, the special catch-up amounts, why the employer match does not count against your limit, and how to fix an over-contribution.
When I was finally saving seriously in my late fifties, the catch-up rules were the best news I found: the system actively lets older savers put away more. Here is exactly how much you can contribute, and why getting the match first still beats everything else.
The 2026 limits at a glance
For 2026, the headline employee limits are $24,500 for a 401(k) and $7,500 for an IRA. The 401(k) figure also covers 403(b), most 457, and TSP plans.
| Account | 2026 base limit | Age-50 catch-up | Total at 50+ |
|---|---|---|---|
| 401(k) / 403(b) / 457 / TSP | $24,500 | $8,000 | $32,500 |
| IRA (traditional + Roth combined) | $7,500 | $1,100 | $8,600 |
The two limits are separate, so most people can fund both a workplace plan and an IRA in the same year. We cover how the accounts differ in types of retirement accounts and the tax-now-versus-tax-later choice in traditional vs Roth. One steady caution throughout the site: contributing is only half the job, because the money is then invested and the value can rise or fall.
Catch-up contributions: extra room from age 50
Once you reach age 50, the IRS lets you contribute more than the base limit, which is a real gift if you started late. For 2026 the 401(k) catch-up is $8,000 on top of the $24,500, so a 50-something can put away up to $32,500. The IRA catch-up is $1,100 on top of $7,500, for up to $8,600.
There is one more tier worth knowing about. Under the SECURE 2.0 law, savers aged 60 to 63 get a higher 401(k) catch-up of $11,250 instead of the usual $8,000, in those four years only. It is a narrow window aimed at the home stretch before retirement, and it is easy to miss. If you are in your early sixties and still working, this is one of the best chances you will get to top up the nest egg. Catch-up amounts also change over time, so confirm the current figures with the IRS.
Why the employer match does not count against your limit
Your employer’s matching contributions do not count toward your $24,500 employee limit, so the match is genuinely extra. This trips up a lot of people who assume that if the company adds money, they must contribute less. The opposite is true: you can contribute your full $24,500 and still receive every dollar of match on top.
There is a separate, much higher combined limit covering everything that goes into the account in a year, your contributions, the employer match, and any profit sharing. Most savers never come close to it. The practical point is the one we repeat across the site: contribute at least enough to capture the full employer match first, because it is the closest thing to free money in personal finance. If you leave a job, that money may follow rules about vesting and can be moved with a rollover.
A note on Roth IRA income limits
High earners can be phased out of contributing directly to a Roth IRA, even though the $7,500 limit itself does not change with income. The IRS sets income ranges above which your allowed Roth contribution shrinks and then disappears. Below them, you can contribute the full amount; inside them, a reduced amount; above them, nothing directly.
This catches people who get a raise and keep contributing out of habit. It is one reason to check your eligibility each year rather than setting it and forgetting it. Traditional IRA contributions are always allowed if you have earned income, though the tax deduction can be limited if you or a spouse have a workplace plan. We explain the differences in IRA accounts explained.
What to do if you over-contribute
An over-contribution is penalized, so fix it fast rather than hoping it sorts itself out. It can happen easily: switching jobs mid-year and contributing to two 401(k)s, or paying into a Roth IRA after your income crossed the limit.
- IRA excess: the IRS charges a 6% excise tax on the excess amount for every year it stays in the account. To avoid it, withdraw the excess (and any earnings on it) before your tax-filing deadline.
- 401(k) excess: tell your plan administrator and ask for the excess to be returned, ideally before April 15 of the following year. Leave it too long and you can be taxed on the same money twice.
When you are unsure, contact the plan administrator or a tax professional promptly. The IRS publishes the current rules and limits, and because the figures change annually, treat every number here as the 2026 amount and check the current year before you act. For the wider picture of how saving fits the plan, see retirement planning, and for keeping costs down, retirement account fees.
References
- 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500, Internal Revenue Service.
- Retirement plans, Internal Revenue Service.
- Roth IRAs, Internal Revenue Service.
Frequently asked questions
What is the 401(k) contribution limit for 2026?
For 2026 the employee contribution limit for a 401(k) is $24,500. The same limit applies to 403(b), most 457 plans, and the federal Thrift Savings Plan (TSP). If you are 50 or over you can add a catch-up of $8,000, bringing your total to $32,500. From ages 60 to 63 a higher catch-up of $11,250 applies instead, under the SECURE 2.0 law. These are employee limits and they change most years, so confirm the current figure with the IRS.
What is the IRA contribution limit for 2026?
For 2026 you can contribute up to $7,500 to an IRA. That is a combined limit across all your traditional and Roth IRAs, not $7,500 in each. If you are 50 or over, you can add a $1,100 catch-up, bringing your total to $8,600. High earners may be phased out of contributing directly to a Roth IRA, and you need earned income to contribute at all. The 401(k) and IRA limits are separate, so you can generally fund both in the same year.
Does the employer match count toward my contribution limit?
No. Your employer's matching contributions do not count toward your $24,500 employee limit, so the match is genuinely extra money on top of what you put in. There is a separate, much higher combined limit on everything that goes into the account (your contributions, the match, and any profit sharing), but most savers never get near it. The practical takeaway is to contribute at least enough to capture the full match, because it is the closest thing to free money in retirement saving.
What happens if I contribute too much to a 401(k) or IRA?
Excess contributions are penalized, so fix them quickly. For an IRA, the IRS charges a 6% excise tax on the excess for each year it stays in the account, so you generally want to withdraw the excess (plus any earnings on it) before the tax-filing deadline. For a 401(k), tell your plan administrator and ask for the excess to be returned, ideally before April 15 of the following year, or you can be taxed on the money twice. When in doubt, ask the plan or a tax professional promptly.
Can I contribute to both a 401(k) and an IRA in the same year?
Usually yes. The 401(k) limit ($24,500 for 2026) and the IRA limit ($7,500 for 2026) are separate, so you can contribute to both in the same year. Whether your traditional IRA contribution is tax-deductible can be limited if you (or a spouse) are covered by a workplace plan and your income is above certain thresholds, and Roth IRA contributions phase out for high earners. The contribution is still allowed in many cases; it is the tax break that may be reduced.
Written by Linda Marsh. Reviewed byDaniel Brookfield, CFP®.
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