401(k) and IRA Contribution Limits 2026: How Much Should You Invest?

Every year the IRS updates how much you're allowed to contribute to tax-advantaged retirement accounts. This article covers the official 2026 limits for 401(k) and IRA accounts, the new Roth catch-up rule that applies to higher earners, and a practical framework for deciding how much of your paycheck should actually go toward retirement.

2026 401(k) Contribution Limits

The employee deferral limit — the amount you personally can put into your 401(k) from your paycheck — rises with age under SECURE 2.0's expanded catch-up rules.

Age Tier	2026 Limit
Under age 50	$24,500
Age 50 and older (standard catch-up: +$8,000)	$32,500
Ages 60–63 ("super catch-up": +$11,250)	$35,750

2026 IRA Contribution Limits

• Under age 50: $7,500 (Traditional and Roth combined)
• Age 50 and older: $8,600

If you have both a Traditional and a Roth IRA, the limit applies across both accounts combined — not $7,500 to each.

The Roth Catch-Up Rule for Higher Earners

Starting in 2026, if you earned more than $150,000 in the prior year, any 401(k) catch-up contributions you make must go into a Roth (after-tax) account rather than pre-tax. You no longer get a current-year deduction for that catch-up portion — but it still grows and can be withdrawn tax-free in retirement. This rule affects the catch-up amount only, not your base $24,500 deferral.

How Much Should You Actually Contribute?

1. At minimum, contribute enough to capture your full employer 401(k) match — it's a guaranteed, immediate return on your money.
2. Next, consider maxing out an IRA ($7,500 / $8,600), since IRAs often offer lower fees and a wider choice of investments than an employer plan.
3. After that, increase your 401(k) contribution percentage toward the $24,500 annual limit (or higher, if catch-up eligible) as your income allows.
4. If you have an HSA-eligible health plan, consider funding the HSA too — it offers a triple tax advantage on top of your retirement savings.

Frequently Asked Questions

What happens if I contribute more than the limit? Excess contributions can trigger a 6% excise tax for each year they remain in the account uncorrected. Remove any excess amount, plus its earnings, before the tax filing deadline to avoid the penalty.

Do employer matching contributions count toward my $24,500 limit? No — the $24,500 limit applies only to your own employee deferrals. Employer matching and profit-sharing contributions fall under a separate, much higher combined plan limit.