The simple ira contribution limits 2026 depend on two things: how many people your employer employs and how old you are. The base employee deferral is $17,000, but a higher tier reaches $18,100, and age-based catch-up amounts add either $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
For 2026, the base employee deferral limit is $17,000 and the higher SECURE 2.0 limit is $18,100, according to IRS Notice 2025-67 (page 2). Catch-up figures layer on top of those base amounts by age. The table below shows each 2026 figure next to its 2025 predecessor so the year-over-year change is clear.
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| 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 |
| Annual compensation cap (for 2% nonelective) | $350,000 | $360,000 |
These are the 2026 cost-of-living-adjusted amounts published in IRS Notice 2025-67 for tax year 2026 (plan years beginning January 1, 2026). For the raw figures across every account type, our 2026 retirement contribution limits hub lists them side by side.
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 the amounts published in IRS Notice 2025-67 and the IRS SIMPLE IRA plan page.
Your exact 2026 maximum comes from answering two questions: how large is the employer, and what is your age. Across the two deferral tiers and three age bands, an account can carry six different deferral-plus-catch-up combinations. The steps below resolve it using the figures in IRS Notice 2025-67 and the employer-contribution rules on the IRS SIMPLE IRA plan page.
- Question 1, employer size and election. If the employer has 25 or fewer employees, the higher $18,100 deferral limit applies. If the employer has 26 to 100 employees, the higher $18,100 limit applies only if 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, employer-contribution rules; IRC 408(p)(2)(E)). You can confirm the employer’s election with the plan sponsor.
- Question 2, your age at year-end. Under 50: no catch-up. Age 50 to 59 or 64+: 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. The catch-up that applies to most SIMPLE plans, the standard $17,000 deferral 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 stays flat for 2026. The higher catch-up for ages 60 to 63 is $5,250 in both tiers and also holds flat (Source: IRS Notice 2025-67, page 2; IRS newsroom release on the 2026 limits). Which age-50 figure applies therefore tracks the deferral tier: $4,000 pairs with the standard $17,000 limit, and $3,850 pairs with the higher $18,100 limit.
Total maximum deferral by scenario for 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).
Combining the deferral tier with the age-based catch-up produces the employee’s total maximum for 2026. The most common combinations appear below, using the $4,000 age-50 catch-up for standard plans, the $3,850 age-50 catch-up for higher-limit plans, and the $5,250 catch-up for ages 60 to 63, all from IRS Notice 2025-67. These totals are elective-deferral amounts only and exclude employer contributions.
| 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 |
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 limit for 2026 (Source: IRS SIMPLE IRA plan page; IRS Notice 2025-67).
Under the two required formulas, the IRS SIMPLE IRA plan page applies the $360,000 annual compensation limit for 2026 to the 2% nonelective contribution; the page states the 3% dollar-for-dollar match as a percentage of the employee’s compensation and does not attach that annual compensation limit to the match (Source: IRS SIMPLE IRA plan page). 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 is increased from $5,100 to $5,300 for 2026 under IRC section 408(p)(2)(A)(iv) (Source: IRS Notice 2025-67, page 6).
Contribution deadlines for 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).
These two timelines come from the IRS SIMPLE IRA plan page under the heading “When must contributions be deposited?” The employee-deferral window is measured from the month wages would otherwise have been payable in cash, not from year-end. The employer-contribution deadline tracks the business’s own tax-filing due date, including any extension. The exact deposit schedule is set by the plan administrator and the employer’s filing timeline. The IRS page also notes that if contributions are not deposited by their due date, correction procedures apply, and that an employer generally has no annual Form 5500 filing requirement for a SIMPLE IRA plan (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 figures come from IRS Notice 2025-67.
The two plans also differ in employer flexibility and administrative load. A SIMPLE IRA is described by the IRS as suited to small employers not currently sponsoring a retirement plan, with no start-up and operating costs of a conventional plan and generally no annual Form 5500 requirement. A 401(k), by contrast, can be offered by any size of employer and generally involves more formal plan administration. The table below compares the core employee figures for 2026, drawn from IRS Notice 2025-67 and the IRS SIMPLE IRA plan page.
| Feature | SIMPLE IRA (2026) | 401(k) (2026) |
|---|---|---|
| Employee deferral | $17,000 ($18,100 higher tier) | $24,500 |
| Age 50+ catch-up | $4,000 standard plans ($3,850 in 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 those weighing where to place retirement dollars alongside other tax factors, our pages on Roth conversion strategy, required minimum distributions for 2026, and the Social Security tax torpedo describe how these accounts interact over time.
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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
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 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).
What companies can offer SIMPLE IRAs?
A SIMPLE IRA is available to any small business, generally with 100 or fewer employees, per the IRS SIMPLE IRA plan page. The employer generally cannot maintain any other retirement plan at the same time. SECURE 2.0 also created a higher deferral limit tier tied to employer size and, for employers with 26 to 100 employees, an employer election.
Are contributions to a SIMPLE IRA made pre-tax?
Employee salary reduction contributions to a SIMPLE IRA are not subject to federal income tax withholding, and a withdrawal is generally taxable as ordinary income in the year received (Source: IRS SIMPLE IRA plan page). The contributions remain subject to Social Security, Medicare, and federal unemployment taxes. Tax treatment can vary by individual circumstance.
How do SIMPLE IRA limits compare to 401(k) limits?
SIMPLE IRA deferral limits are lower. 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, while a 401(k) match is optional, and 401(k) plans generally carry more administrative requirements.
Can I contribute to a SIMPLE IRA and a Roth IRA in the same year?
The rules generally allow contributing to both a SIMPLE IRA and a Roth IRA in the same year, because they have separate limits. For 2026, Roth IRA eligibility phases out between $153,000 and $168,000 of income for singles and heads of household (Source: IRS Notice 2025-67). Whether both fit a given situation depends on income and other factors.
Sources
IRS Notice 2025-67, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living” (pages 2 and 6): https://www.irs.gov/pub/irs-drop/n-25-67.pdf. IRS newsroom, “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 “SIMPLE IRA plan” (eligibility, employer-contribution rules, and contribution-deposit deadlines): https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan. IRS “Retirement topics – SIMPLE IRA contribution limits”: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-simple-ira-contribution-limits. 26 U.S. Code section 408 (Legal Information Institute, Cornell): https://www.law.cornell.edu/uscode/text/26/408. Higher-limit eligibility and the 26-to-100-employee election reflect SECURE 2.0 Act and IRC 408(p)(2)(E), as stated on the IRS SIMPLE IRA plan page.
