The SIMPLE IRA contribution limits 2026 set the base employee deferral at $17,000, with a higher tier of $18,100 under SECURE 2.0 and age-based catch-ups of $4,000, $3,850, or $5,250 on top.
Key Takeaways
- The standard employee elective deferral for 2026 is $17,000, up from $16,500 in 2025 (IRS Notice 2025-67).
- A higher deferral tier of $18,100 applies to certain smaller-employer plans under SECURE 2.0.
- The age-50 catch-up is $4,000 in standard plans and $3,850 in higher-limit plans for 2026.
- Participants ages 60 to 63 may use a super catch-up of $5,250 in either tier.
- Total 2026 elective deferrals range from $17,000 to $23,350 depending on plan tier and age.
- Employers contribute either a 3% match or a 2% nonelective contribution, the latter applied up to the $360,000 compensation cap.
- The 401(k) elective deferral limit for 2026 is $24,500, above the SIMPLE IRA base of $17,000.
SIMPLE IRA 2026 at a Glance
Figures reflect IRS Notice 2025-67 for plan years beginning January 1, 2026.
The SIMPLE IRA contribution limits 2026 turn on two facts: how many people the employer employs and how old you are at year-end. The base employee elective deferral is $17,000 (up from $16,500 in 2025), a higher tier reaches $18,100, and age-based catch-ups add $4,000, $3,850, or $5,250 on top, according to IRS Notice 2025-67.
For 2026, the standard SIMPLE IRA employee elective deferral limit is $17,000, up from $16,500 in 2025. A higher limit of $18,100 applies to certain smaller-employer plans under SECURE 2.0. The age-50 catch-up is $4,000 in standard plans and $3,850 in the higher-limit plans, and the ages 60 to 63 catch-up is $5,250 (Source: IRS Notice 2025-67).
SIMPLE IRA contribution limits 2026 at a glance
The SIMPLE IRA contribution limits for 2026 set the base employee deferral at $17,000 and the higher SECURE 2.0 deferral at $18,100, according to IRS Notice 2025-67 (page 2). Catch-up amounts layer on top of those base figures by age. The table below places each 2026 figure next to its 2025 predecessor so the year-over-year change is clear.
| Limit type | 2025 | 2026 |
|---|---|---|
| Standard employee elective deferral | $16,500 | $17,000 |
| Higher deferral (certain smaller-employer plans) | $17,600 | $18,100 |
| Catch-up, age 50+ (standard $17,000 plans) | $3,500 | $4,000 |
| Catch-up, age 50+ (higher $18,100 plans) | $3,850 | $3,850 |
| Higher catch-up, ages 60 to 63 (both tiers) | $5,250 | $5,250 |
| Additional employer nonelective cap | $5,100 | $5,300 |
| Annual compensation cap (for 2% nonelective) | $350,000 | $360,000 |
These figures are the 2026 cost-of-living-adjusted amounts in IRS Notice 2025-67 for plan years beginning January 1, 2026. SECURE 2.0 is the law that created the higher deferral tier and the ages 60 to 63 super catch-up.
Which SIMPLE IRA limit applies to you? A two-question decision tree
Your exact 2026 SIMPLE IRA deferral maximum comes from two facts: the employer’s size and election, and your age at year-end. Across the two deferral tiers and three age bands, an account can produce six deferral-plus-catch-up combinations, ranging from $17,000 to $23,350. The two questions below resolve which figures apply, using amounts in IRS Notice 2025-67.
- Question 1: employer size and election. If the employer has 25 or fewer employees, the higher $18,100 deferral limit applies automatically. If the employer has 26 to 100 employees, the higher $18,100 limit applies only when the employer elects a 4% matching contribution or a 3% nonelective contribution; otherwise the standard $17,000 limit applies (Source: IRS SIMPLE IRA plan page; IRC 408(p)(2)(E)). You can confirm the election with the plan sponsor.
- Question 2: your age at year-end. Under 50, no catch-up. Age 50 to 59 or 64 and older, add the age-50 catch-up. Ages 60, 61, 62, or 63, add the super catch-up of $5,250 (Source: IRS Notice 2025-67).
The $3,850 vs $4,000 catch-up distinction
There are two different age-50 catch-up figures for 2026, and which one applies tracks the deferral tier. The catch-up for standard $17,000 plans is $4,000 (up from $3,500 in 2025). A separate, lower catch-up of $3,850 applies to the higher-limit applicable-employer plans that use the $18,100 deferral, and it holds flat for 2026. The super catch-up for ages 60 to 63 is $5,250 in both tiers (Source: IRS Notice 2025-67, page 2).
What is the total maximum I can defer by age in 2026?
Combining the deferral tier with the age-based catch-up gives the employee’s total 2026 maximum. In a standard $17,000 plan, totals range from $17,000 (under 50) to $22,250 (ages 60 to 63). In a higher-limit $18,100 plan, totals range from $18,100 to $23,350. These figures are elective-deferral amounts only and exclude employer contributions (Source: IRS Notice 2025-67).
| Scenario | Base deferral | Catch-up | 2026 total |
|---|---|---|---|
| Standard plan, under 50 | $17,000 | $0 | $17,000 |
| Standard plan, age 50 to 59 or 64+ | $17,000 | $4,000 | $21,000 |
| Standard plan, ages 60 to 63 | $17,000 | $5,250 | $22,250 |
| Higher-limit plan, under 50 | $18,100 | $0 | $18,100 |
| Higher-limit plan, age 50 to 59 or 64+ | $18,100 | $3,850 | $21,950 |
| Higher-limit plan, ages 60 to 63 | $18,100 | $5,250 | $23,350 |
Savers deferring at these levels near retirement often weigh the timing of future taxable withdrawals. Our guides on how much to convert to Roth and required minimum distributions for 2026 cover how pre-tax balances can interact with later tax years.
Employer contributions: 3% match or 2% nonelective
Every SIMPLE IRA requires the employer to contribute one of two ways for 2026: a dollar-for-dollar match up to 3% of the employee’s compensation, or a 2% nonelective contribution for each eligible employee. The 2% nonelective applies to compensation up to the $360,000 annual limit for 2026 (Source: IRS SIMPLE IRA plan page; IRS Notice 2025-67).
The IRS applies the $360,000 compensation limit for 2026 to the 2% nonelective contribution, and states the 3% match as a percentage of the employee’s compensation without attaching that annual cap to the match. An employer may elect a lower match, no less than 1%, but only for no more than 2 years in any 5-year period (IRC 408(p)(2)(C)(ii)).
SECURE 2.0 also permits an additional employer nonelective contribution of up to the lesser of 10% of compensation or a dollar cap. That cap rises from $5,100 to $5,300 for 2026 under IRC section 408(p)(2)(A)(iv) (Source: IRS Notice 2025-67, page 6).
What is the deadline for SIMPLE IRA contributions in 2026?
SIMPLE IRA deposits follow two deadlines. Employee salary deferrals must generally be deposited within 30 days after the end of the month in which the amounts would otherwise have been payable in cash. Employer matching or nonelective contributions are due by the due date, including extensions, for filing the employer’s federal income tax return for the year (Source: IRS SIMPLE IRA plan page).
The employee-deferral window is measured from the month wages would otherwise have been payable in cash, not from year-end, and the employer-contribution deadline tracks the business’s own tax-filing due date plus any extension. The IRS page adds that if contributions miss their due date, correction procedures apply, and that a SIMPLE IRA plan generally has no annual Form 5500 filing requirement (Source: IRS SIMPLE IRA plan page).
SIMPLE IRA vs 401(k) limits for 2026
SIMPLE IRA deferral limits are lower than 401(k) limits for 2026. The 401(k) elective deferral limit is $24,500, versus the SIMPLE IRA base of $17,000 (or $18,100 in the higher tier). The 401(k) age-50 catch-up is $8,000, versus $4,000 for most SIMPLE plans. Both sets of figures come from IRS Notice 2025-67. Savers who later leave a SIMPLE plan can review the rules for rolling a SIMPLE IRA into a traditional IRA. Who can participate is covered in SIMPLE IRA eligibility rules.
The two plans also differ in employer flexibility and administrative load. The IRS describes a SIMPLE IRA as suited to small employers not currently sponsoring a plan, with lower cost and generally no Form 5500 requirement, while a 401(k) can be offered by any employer and involves more formal administration. The table compares the core employee figures for 2026. For a fuller side by side, see the SIMPLE IRA vs 401(k) comparison.
| Feature | SIMPLE IRA (2026) | 401(k) (2026) |
|---|---|---|
| Employee deferral | $17,000 ($18,100 higher tier) | $24,500 |
| Age 50+ catch-up | $4,000 standard ($3,850 higher-limit plans) | $8,000 |
| Ages 60 to 63 catch-up | $5,250 | $11,250 |
| Employer must contribute | Yes (3% match or 2% nonelective) | No (optional) |
| Who can offer | Small businesses, generally 100 or fewer employees | Any employer |
For savers coordinating account contributions with a broader tax plan, our pages on Roth conversion strategy and the net investment income tax for 2026 outline how these decisions can interact over time.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This page is educational and is not advice; consult a qualified professional.
Frequently asked questions
How much can I contribute to a SIMPLE IRA in 2026?
For 2026, the standard employee elective deferral limit is $17,000, and a higher limit of $18,100 applies to certain smaller-employer plans under SECURE 2.0 (Source: IRS Notice 2025-67). Adding catch-up amounts, a participant may defer up to $22,250 at ages 60 to 63 in a standard plan, or $23,350 in a higher-limit plan, depending on the plan and age.
What is the catch-up contribution for a SIMPLE IRA in 2026?
The age-50 catch-up in standard SIMPLE plans for 2026 is $4,000, up from $3,500 in 2025. In the higher-limit applicable-employer plans, the age-50 catch-up is $3,850 and stays flat. Participants who are ages 60, 61, 62, or 63 during 2026 may use a catch-up of $5,250 in either tier, unchanged from 2025 (Source: IRS Notice 2025-67, page 2).
What is the SIMPLE IRA limit for 2026 for over 50?
For a participant age 50 or older in a standard $17,000 plan, the 2026 maximum is $21,000, the $17,000 base plus the $4,000 catch-up. In a higher-limit $18,100 plan it is $21,950, the $18,100 base plus the $3,850 catch-up. Participants aged 60 to 63 instead use the $5,250 super catch-up, reaching $22,250 or $23,350 (Source: IRS Notice 2025-67).
Can I contribute to both a SIMPLE IRA and a Roth IRA?
The rules generally allow contributing to both a SIMPLE IRA and a Roth IRA in the same year, because they carry separate limits. For 2026, Roth IRA eligibility phases out between $153,000 and $168,000 of income for singles and heads of household, and between $242,000 and $252,000 for married couples filing jointly (Source: IRS Notice 2025-67). Whether both fit a given situation depends on income and other factors.
What is the difference between a SIMPLE IRA and a 401(k)?
The core difference is limits and structure. For 2026 the SIMPLE IRA base deferral is $17,000 versus $24,500 for a 401(k), and the age-50 catch-up is $4,000 versus $8,000 (Source: IRS Notice 2025-67). A SIMPLE IRA requires an employer contribution and generally has no Form 5500 requirement, while a 401(k) match is optional and 401(k) plans generally carry more administration.
What is the deadline for SIMPLE IRA contributions?
Employee salary deferrals must generally be deposited within 30 days after the end of the month in which the amounts would otherwise have been payable in cash. Employer matching or nonelective contributions are due by the due date, including extensions, for filing the employer’s federal income tax return for the year (Source: IRS SIMPLE IRA plan page).
