For tax year 2026, the employee elective deferral limit for 401(k), 403(b), governmental 457(b), and Thrift Savings Plan accounts rises to $24,500 and the individual retirement account (IRA) contribution limit rises to $7,500, according to IRS Notice 2025-67, which is effective January 1, 2026 (Source: IRS Notice 2025-67; IRS News Release IR-2025-111). A notable structural change is that the IRA age-50 catch-up increased for the first time since its creation, moving from a long-standing flat $1,000 to $1,100 because of indexing enacted under the SECURE 2.0 Act (Source: IRS Notice 2025-67).
By the numbers: 2026
- 401(k)/403(b)/457(b)/TSP elective deferral limit: $24,500, up from $23,500 in 2025 (Source: IRS Notice 2025-67)
- IRA contribution limit (traditional and Roth): $7,500, up from $7,000 in 2025 (Source: IRS Notice 2025-67)
- Age-50 catch-up for 401(k)-type plans: $8,000, up from $7,500 in 2025 (Source: IRS Notice 2025-67)
- SECURE 2.0 ages 60 to 63 higher catch-up: $11,250, unchanged from 2025 (Source: IRS Notice 2025-67)
- IRA age-50 catch-up: $1,100, up from $1,000, the first increase in its history (Source: IRS Notice 2025-67)
- Overall defined contribution limit under IRC 415(c): $72,000, up from $70,000 in 2025 (Source: IRS Notice 2025-67)
- Roth catch-up wage threshold under IRC 414(v)(7): $150,000, up from $145,000 (Source: IRS Notice 2025-67)
- Highly compensated employee threshold: $160,000, unchanged from 2025 (Source: IRS Notice 2025-67)
The Q3 Catch-Up Ladder Index expresses the maximum employee elective deferral permitted at each age band for 401(k)-type plans in 2026: under 50, $24,500; ages 50 to 59, $32,500; ages 60 to 63, $35,750; ages 64 and older, $32,500 (Source: computed by Q3 Advisors from IRS Notice 2025-67). Methodology: each rung equals the $24,500 base 402(g) limit plus the single catch-up tier that applies to the participant’s age attained during the calendar year.
What changed for 2026, and what did not
The Internal Revenue Service publishes annual cost-of-living adjustments to retirement plan dollar limits under a group of Internal Revenue Code sections. For 2026, those figures were set out in IRS Notice 2025-67, released in November 2025 and published in Internal Revenue Bulletin 2025-49 dated December 1, 2025 (Source: IRS Notice 2025-67; IRB 2025-49). The companion plain-language summary is IRS News Release IR-2025-111 (Source: IRS News Release IR-2025-111).
Four movements define the year. First, the 402(g) elective deferral limit for 401(k), 403(b), governmental 457(b), and TSP plans rose by $1,000 to $24,500 (Source: IRS Notice 2025-67). Second, the IRA contribution limit rose by $500 to $7,500, and the IRA age-50 catch-up rose to $1,100 (Source: IRS Notice 2025-67). Third, the SECURE 2.0 higher catch-up for participants who attain ages 60, 61, 62, or 63 during the year held at $11,250 and was not adjusted for 2026 (Source: IRS Notice 2025-67). Fourth, the highly compensated employee threshold held flat at $160,000 (Source: IRS Notice 2025-67).
Talk With Craig Wear's Team
Craig has helped IRA millionaires save over $1 million each in unnecessary taxes. Find out if a Roth conversion strategy fits your retirement, with no sales pressure and no product pitch.
The 2026 catch-up ladder for 401(k)-type plans
The total an employee may defer from wages equals the base 402(g) limit plus the one catch-up tier that matches the age the participant attains during the calendar year. The tiers do not stack. The table below states the ceilings that Q3 Advisors computed from the published IRS figures.
| Age band during 2026 | Base deferral (402(g)) | Catch-up | Total elective deferral | Authority |
|---|---|---|---|---|
| Under 50 | $24,500 | $0 | $24,500 | IRC 402(g)(1) |
| 50 to 59 | $24,500 | $8,000 | $32,500 | IRC 414(v)(2)(B)(i) |
| 60 to 63 (higher tier) | $24,500 | $11,250 | $35,750 | IRC 414(v)(2)(E)(i) |
| 64 and older (reverts to standard) | $24,500 | $8,000 | $32,500 | IRC 414(v)(2)(B)(i) |
Worked example. A participant who turns 61 during 2026 and whose plan offers the higher catch-up may defer up to $35,750 from wages ($24,500 plus $11,250). A colleague who turns 64 during 2026 reverts to the standard age-50 tier and may defer up to $32,500 ($24,500 plus $8,000) (Source: computed by Q3 Advisors from IRS Notice 2025-67).
Why the ages 60 to 63 tier stayed at $11,250
The SECURE 2.0 Act created a higher catch-up for participants who attain ages 60 through 63 during the year, defined as the greater of $10,000 (indexed) or 150 percent of the regular age-50 catch-up (Source: IRC 414(v)(2)(E); IRS Notice 2025-67). For 2026, the 150 percent prong computes to $12,000 (150 percent of the $8,000 age-50 catch-up). The IRS-published figure for 2026 nonetheless remains $11,250, the same amount that applied for 2025, because Notice 2025-67 states the limitation for individuals who attain age 60, 61, 62, or 63 in 2026 remains $11,250 (Source: IRS Notice 2025-67). The $12,000 result of the formula is illustrative of the mechanics only. The published $11,250 governs.
This higher tier is optional for plans. An employer that permits age-50 catch-ups is not required to offer the ages 60 to 63 version, so the availability of the $35,750 ceiling depends on the plan document (Source: Kiplinger, “Super catch-up contribution for age 60-63”; Charles Schwab, “What to know about catch-up contributions”). Corroboration for the optional design and the reversion at age 64 comes from those Tier-2 sources; the dollar amounts come from IRS Notice 2025-67.
The IRA catch-up increased for the first time
The IRA age-50 catch-up had been fixed at $1,000 since 2006 and was not adjusted for inflation through 2025 (Source: DQYDJ historical IRA chart, citing IRS COLA notices). The SECURE 2.0 Act began indexing that catch-up, and 2026 is the first year the figure moved above $1,000, to $1,100 (Source: IRS Notice 2025-67). Combined with the $7,500 base, an IRA saver who is age 50 or older may contribute up to $8,600 for 2026 (Source: computed by Q3 Advisors from IRS Notice 2025-67).
| Account type (2026) | Base | Age-50 catch-up | Total for 50+ | Authority |
|---|---|---|---|---|
| Traditional and Roth IRA | $7,500 | $1,100 | $8,600 | IRC 219(b)(5) |
| SIMPLE IRA / SIMPLE 401(k) | $17,000 | $4,000 | $21,000 | IRC 408(p)(2)(E); 414(v)(2)(B)(ii) |
For SIMPLE plans, the general deferral limit is $17,000 for 2026, up from $16,500, and the higher limit for certain applicable small-employer SIMPLE plans is $18,100, up from $17,600 (Source: IRS Notice 2025-67; IR-2025-111). The SIMPLE age-50 catch-up is $4,000, and the SIMPLE version of the ages 60 to 63 higher catch-up remains $5,250 (Source: IRS Notice 2025-67).
Overall and compensation-based limits for 2026
Several limits govern the total that can flow into a defined contribution account and the compensation that plans may recognize. These figures are drawn from IRS Notice 2025-67 and confirmed against IRB 2025-49.
| Limit (2026) | 2026 amount | 2025 amount | Authority |
|---|---|---|---|
| Overall defined contribution limit | $72,000 | $70,000 | IRC 415(c)(1)(A) |
| Defined benefit annual benefit limit | $290,000 | $280,000 | IRC 415(b)(1)(A) |
| Annual compensation limit | $360,000 | $350,000 | IRC 401(a)(17) |
| Highly compensated employee threshold | $160,000 | $160,000 | IRC 414(q)(1)(B) |
| Key employee (top-heavy) officer threshold | $235,000 | $230,000 | IRC 416(i)(1)(A)(i) |
| Governmental grandfathered comp limit | $535,000 | $520,000 | IRC 401(a)(17) |
| SEP minimum compensation threshold | $800 | $750 | IRC 408(k)(2)(C) |
| Pension-linked emergency savings cap | $2,600 | $2,500 | IRC 402A(e)(3)(A)(i) |
The 415(c) overall limit of $72,000 bounds the sum of employee deferrals, employer contributions, and forfeitures allocated to a participant in a defined contribution plan, and it is a separate ceiling from the 402(g) elective deferral limit (Source: IRS Notice 2025-67). Catch-up contributions generally sit outside the 415(c) limit under the applicable rules.
IRA income phase-out ranges for 2026
Eligibility to deduct traditional IRA contributions and to contribute directly to a Roth IRA phases out over modified adjusted gross income (MAGI) ranges that the IRS adjusts each year. Every cost-of-living-indexed range increased for 2026. Two statutory ranges for married filing separately remain fixed at $0 to $10,000 because they are not indexed (Source: IRS Notice 2025-67).
Roth IRA contribution phase-out (MAGI)
| Filing status | 2026 range | 2025 range | Authority |
|---|---|---|---|
| Single / Head of household | $153,000 to $168,000 | $150,000 to $165,000 | IRC 408A(c)(3) |
| Married filing jointly / qualifying surviving spouse | $242,000 to $252,000 | $236,000 to $246,000 | IRC 408A(c)(3) |
| Married filing separately (lived with spouse) | $0 to $10,000 | $0 to $10,000 | IRC 408A(c)(3)(B)(ii)(III) |
Traditional IRA deduction phase-out (AGI, active participant)
| Situation | 2026 range | 2025 range | Authority |
|---|---|---|---|
| Single / Head of household covered by a workplace plan | $81,000 to $91,000 | $79,000 to $89,000 | IRC 219(g) |
| Married filing jointly, contributor covered | $129,000 to $149,000 | $126,000 to $146,000 | IRC 219(g) |
| Married filing jointly, contributor not covered but spouse is | $242,000 to $252,000 | $236,000 to $246,000 | IRC 219(g)(7) |
| Married filing separately, covered | $0 to $10,000 | $0 to $10,000 | IRC 219(g)(3)(B)(iii) |
Investors who exceed the direct Roth IRA MAGI ranges sometimes examine other paths to Roth assets. Educational background on that topic is available on the Q3 Advisors overview of Roth conversion statistics for 2026 and the firm’s Roth conversion service page. These are informational references only, not recommendations.
Applying the Roth IRA income limits 2026: MAGI, edge cases, and excess contributions
The Roth IRA income limits 2026 stated in the phase-out table above are only the starting point. Direct Roth IRA eligibility turns on modified adjusted gross income (MAGI), on a specific married-filing-separately mechanic, and on the excess-contribution rules that apply when a saver contributes while over the ceiling. The figures used below are the same 2026 amounts published in IRS Notice 2025-67; the mechanics come from the underlying Code sections and IRS Publication 590-A (Source: IRS Notice 2025-67; IRS Publication 590-A).
How MAGI is measured for a Roth IRA
Roth IRA MAGI begins with adjusted gross income (AGI) from Form 1040 and adds back certain items. For a saver with only wages and ordinary investment income, MAGI is generally close to AGI (Source: IRS Publication 590-A; IRC 408A). The general sequence is:
- Start with AGI from Form 1040.
- Remove any income from a Roth conversion and any required minimum distribution income that is included in AGI.
- Add back the traditional IRA deduction, the foreign earned income exclusion and housing exclusion, the student loan interest deduction, and certain other items.
- Compare the resulting MAGI to the phase-out ranges in the Roth IRA contribution phase-out table above.
Because a Roth conversion can raise AGI in the year it is reported, the interaction between conversion income and contribution eligibility is one reason these numbers are read together (Source: IRS Publication 590-A). Educational background is available on the Q3 Advisors overview of Roth conversion statistics for 2026.
Married filing separately: the frozen range and its exception
A taxpayer who is married filing separately and lived with a spouse at any time during 2026 phases out between $0 and $10,000 of MAGI, with no direct Roth IRA contribution allowed at $10,000 or more (Source: IRS Notice 2025-67). That range is not indexed for inflation, which is why it has not moved. A standard exception applies: a married-filing-separately taxpayer who did not live with a spouse at any time during the year is treated as a single filer for this purpose and uses the $153,000 to $168,000 range instead (Source: IRC 408A(c)(3)(B); IRS Publication 590-A).
Contributing while over the ceiling
A saver whose 2026 MAGI is at or above the ceiling for a filing status cannot contribute directly to a Roth IRA. The Code does not close off Roth assets entirely, because Roth conversions carry no income limit (Source: IRC 408A). One factual point that affects the after-tax result is the pro-rata rule: under IRC 408(d)(2), all of a taxpayer’s non-Roth IRAs (traditional, SEP, and SIMPLE) are treated as a single pool, so a conversion is taxed proportionally across pre-tax and after-tax dollars rather than on a cherry-picked basis (Source: IRC 408(d)(2); IRS Publication 590-A). This is a description of the mechanics, not a recommendation.
Excess contributions and the 6 percent excise tax
Contributing more than allowed, whether by exceeding the dollar cap or by contributing while over the income limit, triggers a 6 percent excise tax on the excess for each year it remains in the account, and the tax can apply annually until the excess is corrected (Source: IRC 4973). The 2026 IRA contribution deadline is April 15, 2027, the same date as the tax filing deadline (Source: IRC 219; IRS Publication 590-A). Correcting an excess before that date is what avoids the first year of the tax.
| Correction method | Effect | Authority |
|---|---|---|
| Withdraw the excess plus attributable earnings before the filing deadline (including extensions) | Avoids the 6 percent tax for that year | IRC 4973; IRS Publication 590-A |
| Recharacterize the contribution to a different IRA type | Treated as made to the other IRA type if eligible | IRC 408A(d)(6); IRS Publication 590-A |
| Apply the excess to a later year’s contribution room | Reduces that year’s allowable contribution | IRC 4973; IRS Publication 590-A |
Worked example. A single filer with 2026 MAGI of $175,000 is above the $168,000 ceiling, so no direct Roth IRA contribution is allowed for the year. If that filer nonetheless deposited $7,500 into a Roth IRA, the full $7,500 would be an excess contribution subject to the 6 percent excise tax for each year it remains until it is withdrawn, recharacterized, or absorbed (Source: computed by Q3 Advisors from IRC 4973 and IRS Notice 2025-67 thresholds).
Saver’s Credit ceilings for 2026
The Retirement Savings Contributions Credit under IRC 25B, commonly called the Saver’s Credit, phases out at AGI ceilings that also rose for 2026 (Source: IRS Notice 2025-67; IR-2025-111).
| Filing status | 2026 AGI ceiling | 2025 AGI ceiling |
|---|---|---|
| Married filing jointly | $80,500 | $79,000 |
| Head of household | $60,375 | $59,250 |
| Single / Married filing separately | $40,250 | $39,500 |
The Roth catch-up rule for higher earners
Under IRC 414(v)(7), added by the SECURE 2.0 Act, catch-up contributions for certain higher-wage employees must be designated as Roth. The wage threshold that triggers this requirement is stated as $150,000 for 2026, up from $145,000, and it is measured against prior-year wages (Source: IRS Notice 2025-67). An employee whose prior-year FICA wages from the sponsoring employer exceeded the applicable threshold is directed to make catch-up contributions on a Roth basis rather than pre-tax (Source: IRS Notice 2025-67). The administrative and effective-date mechanics of this rule are governed by the underlying IRS regulations; the dollar threshold above is the figure confirmed from Notice 2025-67.
For readers weighing how account type interacts with later taxation, related Q3 Advisors educational material includes the retirement tax window and required minimum distributions for 2026.
History: the 401(k) elective deferral limit
The 401(k) provision originates in the Revenue Act of 1978, and the separate 402(g) elective-deferral cap took effect for 1987 (Source: DQYDJ historical 401(k) chart, citing IRS COLA notices). The table below lists milestone years in which the limit changed. Intervening years generally hold at the prior value. Figures for 2023 through 2026 are cross-confirmed against the IRS COLA table and Notice 2025-67; earlier years rely on the DQYDJ aggregator, which cites the underlying IRS notices.
| Year | Elective deferral (402(g)) | Age-50 catch-up | Driver |
|---|---|---|---|
| 1987 | $7,000 | Not yet in effect | 402(g) cap took effect |
| 1998 | $10,000 | Not yet in effect | |
| 2000 | $10,500 | Not yet in effect | |
| 2002 | $11,000 | $1,000 | EGTRRA; catch-up created |
| 2006 | $15,000 | $5,000 | |
| 2009 | $16,500 | $5,500 | |
| 2012 | $17,000 | $5,500 | |
| 2015 | $18,000 | $6,000 | |
| 2018 | $18,500 | $6,000 | |
| 2019 | $19,000 | $6,000 | |
| 2020 | $19,500 | $6,500 | |
| 2022 | $20,500 | $6,500 | |
| 2023 | $22,500 | $7,500 | |
| 2024 | $23,000 | $7,500 | |
| 2025 | $23,500 | $7,500 | Ages 60-63 higher tier debuts at $11,250 |
| 2026 | $24,500 | $8,000 | Ages 60-63 tier remains $11,250 |
Across this span the limit moved from roughly $7,000 in 1987 to $24,500 in 2026, about 3.5 times in nominal terms over roughly 39 years (Source: DQYDJ, citing IRS; 2023 to 2026 confirmed on IRS COLA page and Notice 2025-67).
History: the IRA contribution limit
IRAs were created by the Employee Retirement Income Security Act of 1974, effective for 1975 (Source: DQYDJ historical IRA chart, citing IRS). A notable feature of the series is a 20-year freeze at $2,000 from 1982 through 2001, ended by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which also created the IRA age-50 catch-up (Source: DQYDJ, citing IRS).
| Years | IRA limit | Age-50 catch-up | Driver |
|---|---|---|---|
| 1975 to 1981 | $1,500 | Not yet in effect | ERISA created IRAs |
| 1982 to 2001 | $2,000 | Not yet in effect | ERTA 1981; frozen ~20 years |
| 2002 to 2004 | $3,000 | $500 | EGTRRA; catch-up created |
| 2005 | $4,000 | $500 | |
| 2006 to 2007 | $4,000 | $1,000 | |
| 2008 to 2012 | $5,000 | $1,000 | |
| 2013 to 2018 | $5,500 | $1,000 | |
| 2019 to 2022 | $6,000 | $1,000 | |
| 2023 | $6,500 | $1,000 | |
| 2024 to 2025 | $7,000 | $1,000 | |
| 2026 | $7,500 | $1,100 | SECURE 2.0 indexing; first-ever catch-up increase |
Across the full history the base limit moved from $1,500 in 1975 to $7,500 in 2026, about 5 times in nominal terms over roughly 51 years (Source: DQYDJ, citing IRS; 2023 to 2026 confirmed on IRS COLA page and Notice 2025-67). The IRA age-50 catch-up sat flat at $1,000 from 2006 through 2025; the $1,100 figure for 2026 is its first inflation adjustment (Source: IRS Notice 2025-67).
How the pieces interact
The published limits are ceilings, not entitlements. Four constraints commonly narrow what a given saver may actually contribute. First, the 415(c) overall limit of $72,000 bounds total additions to a defined contribution account (Source: IRS Notice 2025-67). Second, the ages 60 to 63 higher catch-up is optional for plans, so the $35,750 ceiling is available only where the plan document offers it (Source: Kiplinger; Charles Schwab). Third, IRA income phase-out ranges limit deductibility and direct Roth eligibility (Source: IRS Notice 2025-67). Fourth, the $150,000 Roth catch-up wage rule directs how higher earners’ catch-ups are characterized (Source: IRS Notice 2025-67).
Contribution decisions also sit alongside other 2026 thresholds that affect retirees and pre-retirees. Q3 Advisors maintains related educational references on Medicare IRMAA 2026 brackets and premiums, the taxation of Social Security benefits for 2026, and the net investment income tax for 2026. Broader legislative context appears on the firm’s overview of SECURE 2.0 Act provisions.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial professional.
Frequently asked questions
What is the 401(k) contribution limit for 2026?
The employee elective deferral limit for 401(k), 403(b), governmental 457(b), and TSP plans is $24,500 for 2026, up from $23,500 in 2025 (Source: IRS Notice 2025-67).
What is the IRA contribution limit for 2026?
The IRA contribution limit is $7,500 for 2026, up from $7,000 in 2025. The same limit applies to traditional and Roth IRAs (Source: IRS Notice 2025-67).
What is the 401(k) catch-up contribution for age 50 in 2026?
The age-50 catch-up for 401(k)-type plans is $8,000 for 2026, up from $7,500 in 2025 (Source: IRS Notice 2025-67).
How much can someone age 50 to 59 contribute to a 401(k) in 2026?
Up to $32,500, which is the $24,500 base plus the $8,000 age-50 catch-up (Source: computed by Q3 Advisors from IRS Notice 2025-67).
What is the SECURE 2.0 higher catch-up for ages 60 to 63 in 2026?
It remains $11,250 for 2026, unchanged from 2025 (Source: IRS Notice 2025-67).
How much can someone age 60 to 63 contribute to a 401(k) in 2026?
Up to $35,750, which is the $24,500 base plus the $11,250 higher catch-up, where the plan offers the higher tier (Source: computed by Q3 Advisors from IRS Notice 2025-67).
Why did the ages 60 to 63 catch-up not rise for 2026?
Notice 2025-67 states the limitation for individuals who attain age 60, 61, 62, or 63 in 2026 remains $11,250. Although 150 percent of the $8,000 age-50 catch-up computes to $12,000, the published figure held at $11,250 (Source: IRS Notice 2025-67).
What happens to the higher catch-up at age 64?
At age 64 and older, the participant reverts to the standard age-50 catch-up of $8,000 for 2026 (Source: IRS Notice 2025-67; corroborated by Kiplinger and Charles Schwab).
Is the ages 60 to 63 higher catch-up mandatory for plans?
No. It is optional. An employer that permits age-50 catch-ups is not required to offer the ages 60 to 63 version (Source: Kiplinger; Charles Schwab).
What is the IRA age-50 catch-up for 2026?
It is $1,100 for 2026, up from $1,000. This is the first increase in the IRA age-50 catch-up, driven by indexing under the SECURE 2.0 Act (Source: IRS Notice 2025-67).
How much can someone age 50 or older contribute to an IRA in 2026?
Up to $8,600, which is the $7,500 base plus the $1,100 catch-up (Source: computed by Q3 Advisors from IRS Notice 2025-67).
What is the overall defined contribution limit for 2026?
The IRC 415(c) overall limit is $72,000 for 2026, up from $70,000 in 2025 (Source: IRS Notice 2025-67).
What is the annual compensation limit for 2026?
The IRC 401(a)(17) annual compensation limit is $360,000 for 2026, up from $350,000 in 2025 (Source: IRS Notice 2025-67).
Did the highly compensated employee threshold change for 2026?
No. The IRC 414(q) highly compensated employee threshold remains $160,000 for 2026 (Source: IRS Notice 2025-67).
What are the Roth IRA income phase-out ranges for 2026?
Single and head of household: $153,000 to $168,000. Married filing jointly: $242,000 to $252,000. Married filing separately who lived with a spouse: $0 to $10,000 (Source: IRS Notice 2025-67).
What are the Roth IRA income limits 2026 if my MAGI is over the ceiling?
If 2026 MAGI is at or above the ceiling for the filing status ($168,000 single or head of household, $252,000 married filing jointly, $10,000 married filing separately who lived with a spouse), no direct Roth IRA contribution is allowed. Roth conversions carry no income limit, but under the pro-rata rule of IRC 408(d)(2) a conversion is taxed proportionally across all pre-tax and after-tax non-Roth IRAs (Source: IRS Notice 2025-67; IRC 408(d)(2); IRS Publication 590-A). This describes the rules and is not a recommendation.
What happens if I contribute to a Roth IRA while over the 2026 income limit?
The amount contributed while ineligible is an excess contribution subject to a 6 percent excise tax for each year it remains in the account (Source: IRC 4973). The tax can generally be avoided by withdrawing the excess plus attributable earnings before the filing deadline including extensions, recharacterizing it, or applying it to a later year. The 2026 IRA contribution deadline is April 15, 2027 (Source: IRC 219; IRS Publication 590-A).
What are the traditional IRA deduction phase-out ranges for 2026?
For an active participant filing single or head of household: $81,000 to $91,000. For married filing jointly where the contributor is covered: $129,000 to $149,000. Where the contributor is not covered but the spouse is: $242,000 to $252,000 (Source: IRS Notice 2025-67).
What is the Roth catch-up wage threshold for 2026?
The IRC 414(v)(7) wage threshold is $150,000 for 2026, up from $145,000. Certain higher-wage employees’ catch-up contributions must be designated as Roth (Source: IRS Notice 2025-67).
What are the SIMPLE plan limits for 2026?
The general SIMPLE deferral limit is $17,000, the higher limit for certain applicable SIMPLE plans is $18,100, and the SIMPLE age-50 catch-up is $4,000 (Source: IRS Notice 2025-67; IR-2025-111).
What are the Saver’s Credit AGI ceilings for 2026?
Married filing jointly: $80,500. Head of household: $60,375. Single or married filing separately: $40,250 (Source: IRS Notice 2025-67; IR-2025-111).
Where do the 2026 figures come from?
They come from IRS Notice 2025-67, effective January 1, 2026, published in Internal Revenue Bulletin 2025-49 dated December 1, 2025, and summarized in IRS News Release IR-2025-111 (Source: IRS Notice 2025-67; IRB 2025-49; IR-2025-111).
How much has the 401(k) limit grown since 1987?
The 402(g) elective deferral limit moved from roughly $7,000 in 1987 to $24,500 in 2026, about 3.5 times in nominal terms (Source: DQYDJ, citing IRS; 2023 to 2026 confirmed on IRS COLA page and Notice 2025-67).
How much has the IRA limit grown since 1975?
The IRA base limit moved from $1,500 in 1975 to $7,500 in 2026, about 5 times in nominal terms, including a 20-year freeze at $2,000 from 1982 through 2001 (Source: DQYDJ, citing IRS; 2023 to 2026 confirmed on IRS COLA page and Notice 2025-67).
Sources
IRS Notice 2025-67, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living for 2026,” effective January 1, 2026, published in Internal Revenue Bulletin 2025-49 (December 1, 2025): https://www.irs.gov/pub/irs-drop/n-25-67.pdf and https://www.irs.gov/irb/2025-49_IRB. IRS News Release IR-2025-111, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500”: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500. IRS COLA table, “COLA increases for dollar limitations on benefits and contributions”: https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions. IRS Publication 590-A, “Contributions to Individual Retirement Arrangements (IRAs)”: https://www.irs.gov/publications/p590a. Historical series (Tier-3 aggregator citing IRS COLA notices), DQYDJ “Historical 401(k) Contribution Limit”: https://dqydj.com/historical-401k-contribution-limit/ and DQYDJ “Historical IRA Contribution Limit”: https://dqydj.com/historical-ira-contribution-limit/. Corroboration on the optional design and age-64 reversion of the ages 60 to 63 catch-up: Kiplinger, “Super catch-up contribution for age 60-63”: https://www.kiplinger.com/taxes/super-catch-up-contribution-for-age-60-63, and Charles Schwab, “What to know about catch-up contributions”: https://www.schwab.com/learn/story/what-to-know-about-catch-up-contributions.
About the author
Disclaimer
This material is provided by Q3 Advisors, a registered investment adviser, for informational and educational purposes only. It is not investment, legal, or tax advice, nor a recommendation or solicitation to buy or sell any security or to adopt any strategy. Information is believed to be from reliable sources as of the dates cited, but its accuracy is not guaranteed and figures are subject to change. Past performance does not guarantee future results, and the value of investments can go down as well as up. Registration with the SEC or a state does not imply a certain level of skill or training. See Q3 Advisors’ Form ADV Part 2A for information on services, fees, and conflicts of interest. Readers should consult their own qualified tax, legal, or financial advisor before making any decisions.
