2026 retirement limits: $24,500 for 401(k), $7,500 for IRA
What happened
The IRS set the 2026 employee 401(k) contribution limit at $24,500, with an $8,000 catch-up at age 50+ and an enhanced $11,250 catch-up for ages 60-63 under SECURE 2.0. The IRA contribution limit is $7,500, with a $1,100 catch-up at 50+.
Why it matters
These limits are the ceiling on tax-advantaged saving each year β space you can't reclaim later if you skip it. The gap between contributing a little and maxing out compounds into a very different retirement balance.
Who is affected
- Employees with access to a 401(k) or similar plan
- Savers aged 50+ eligible for catch-up contributions
- Anyone in the 60-63 SECURE 2.0 enhanced catch-up window
| 401(k) employee limit | prior year | $24,500 | |
| Age 50+ catch-up | prior year | $8,000 | |
| Ages 60-63 catch-up (SECURE 2.0) | standard | $11,250 | |
| IRA limit | prior year | $7,500 |
Maxing the 401(k) versus a partial contribution
Illustrative: 30 years, 7% average annual return, contributions level
| Item | Before | After |
|---|---|---|
| Contributing $24,500/yr | β | grows substantially more |
| Contributing $10,000/yr | β | far smaller balance |
| Driver of the gap | Contribution size | Compounding over time |
Illustrative only; investment returns are not guaranteed and vary year to year. Not investment advice.
Frequently asked questions
What is the 2026 401(k) contribution limit?
The 2026 employee 401(k) contribution limit is $24,500, with an $8,000 catch-up at age 50+ and an enhanced $11,250 catch-up for ages 60-63 under SECURE 2.0.
What is the 2026 IRA contribution limit?
The 2026 IRA contribution limit is $7,500, with a $1,100 catch-up for those aged 50 and over, for a total of $8,600.