2026 Contribution Limits

Caroline McDonald |
Categories
Tax Planning
Financial Planning

A new year means some increased amounts for saving into retirement and health savings accounts! Here’s a quick rundown of some updates for retirement savings:

  • 401(k) contribution for people under age 50: $24,500 (up from $23,500)
  • 401(k) catch-up contribution for people age 50 and older: $8,000 (up from $7,500) (total of $32,500 to your 401(k) if over age 50)
    • Secure Act 2.0 has a "super catch up” provision for employees aged 60-63 which remains unchanged at $11,250
      • Total contributions of $35,750
    • Beginning in 2026, Secure Act 2.0 forces those who earn more than $145,000 (individually) to contribute their catch-up dollars into a designated Roth 401(k)
      • There will be no tax deduction as these are “after-tax dollars”
  • Simple IRAs: $17,000 (up from $16,500)
  • IRAs and Roth IRAs
    • $7,500/year for people under age 50
    • $1,100/year catch up for people age 50 and older (total of $8,600)
  • HSA contributions
    • Single coverage: $4,400 (up from $4,300)
    • Family coverage: $8,750 (up from $8,550)
    • Catch up contributions 55+: unchanged at $1,000

It is important to be aware of these updated contribution limits as many people budget a certain amount each year. Failing to recalculate the amount you should be withholding from each paycheck could lead to some end-of-year shortfalls that we want to avoid. As the new year approaches, take this opportunity to increase your savings where possible and stay on track with your goals!

Which of these updates apply to you? As shown above, age is one factor when it comes to contribution limits. Other considerations are your annual income and whether you (or your spouse) have workplace plans available. Here are the updated IRA and Roth IRA income eligibility limits for 2026:

Traditional IRA income phase-out ranges for the deductibility of contributions:

  • $81,000 to $91,000 - Single taxpayers covered by a workplace retirement plan
  • $129,000 to $149,000 - Married couple filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan
  • $242,000 to $252,000 - A taxpayer not covered by workplace retirement plan married to someone who is covered
  • $0 to $10,000 - Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan

Roth IRA contributions income phase-out ranges:

  • $153,000 to $168,000 - Single taxpayers and head of household
  • $242,000 to $252,000 - Married, filing jointly
  • $0 to $10,000 - Married, filing separately

 

Investment Advice offered through Great ValleyAdvisor Group, a RegisteredInvestment Advisor. Great Valley Advisor Group and Haas Financial Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. GreatValley Advisor Group and Haas Financial Group are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice. are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice. 

Ticket #T010164

Sources

https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits

https://www.schwab.com/learn/story/what-to-know-about-catch-up-contributions