It’s never too early to formulate your savings plan for 2026 so I was happy to talk with clients this week about the recently announced retirement contribution limits for next year. Let’s look at the updated limits and a some new rules (from the Secure Act 2.0) that will take finally take effect in 2026.

Updated limits

As a reminder, each year the limits for various retirement accounts are updated (to take inflation into account). Here is a summary of some key contribution limits for 2026:

401k/403(b)/457 – employee contribution limits for various types of employer-sponsored retirement plans was increased to $24,500. See more on catch-up contributions below. Maximum contributions (including employee and employer) limit increased to $72,000

Self-employed retirement plans– maximum savings limit increased to $72,000 (both employee and employer contributions)

IRA and Roth IRA contribution limits – contributions to individual retirement accounts are limited to $7,500 in 2026. Catch-up contributions to these accounts (for individuals age 50 and over) is now $1,100.

Roth contributions may be limited based on your income. Below are those thresholds:

• Single and head-of-household filers can contribute the full amount if their modified adjusted gross income (MAGI) is below $153,000. Contributions phase out between $153,000 and $168,000, and are disallowed above $168,000.
• Married couples filing jointly can contribute fully with MAGI below $242,000. The phase-out range is $242,000 to $252,000, with no contributions allowed above $252,000.

If you or your spouse are covered by a workplace retirement plan, your ability to deduct traditional IRA contributions may also be limited as follows:

• Single filers: $81,000–$91,000
• Married filing jointly (covered spouse): $129,000–$149,000
• Married filing jointly (non-covered contributor, covered spouse): $242,000–$252,000
• Married filing separately: $0–$10,000 (unchanged)

New rules

Prior legislation (Secure Act 2.0) put in place new rules surrounding catch-up contributions. Those rules took some time to implement but are set to finally take effect in 2026. If you are over 50, be sure you understand these two new rules

1.) Added catch-up – if you are an employee of the age 60-63, you are eligible to contribute a higher catch-up contribution of $11,250 (versus the $8,000 allowed for all other age groups).

2.) Roth catch-up – the more impactful rule from Secure Act 2.0 relates to catch-up contributions for higher earning workers. Beginning Jan. 1, 2026, if you earned more than $150,000 in FICA wages in the prior calendar year, you will be required to make your catch-up contributions on a Roth basis. Pre-tax election can still be made for the elective employee portion but any catch-up amount will be required to go into the Roth (after-tax) option. Most employer plans have been adapted to allow for Roth contributions but in the event your plan does not have this feature, no catch-up contributions will be allowed

Hopefully these updates will allow you to start planning your 2026 savings approach!