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Retirement

Retirement Account Contribution Limits for 2026

December 10, 2025 5 min read
Retirement planning

Maximizing retirement contributions is one of the best tax-advantaged strategies available. Here are the updated contribution limits for 2026.

401(k) Plans

$23,000
Employee Contribution Limit

Standard contribution limit for employees under age 50

$30,500
Age 50+ Catch-Up Contribution

Additional $7,500 for those 50 and older

Total Annual Addition Limit:

The combined total of employee contributions, employer matching, and profit-sharing cannot exceed $69,000 ($76,500 with catch-up contributions for age 50+).

Traditional & Roth IRA

$7,000
Standard Contribution Limit

For individuals under age 50

$8,000
Age 50+ Catch-Up Contribution

Additional $1,000 for those 50 and older

Income Phase-Out Ranges (Roth IRA):

  • • Single filers: $146,000 - $161,000
  • • Married filing jointly: $230,000 - $240,000
  • • Married filing separately: $0 - $10,000

Above these income ranges, Roth IRA contributions are not allowed. Consider backdoor Roth conversion strategies.

SEP IRA (Self-Employed)

25%
of compensation or
$69,000

SEP IRAs allow business owners to contribute up to 25% of their compensation (20% of net self-employment income for sole proprietors) or $69,000, whichever is less.

SIMPLE IRA

$16,000
Employee Contribution Limit

For employees under age 50

$19,500
Age 50+ with Catch-Up

Additional $3,500 for those 50 and older

Employer Matching Requirements:

Employers must either match employee contributions dollar-for-dollar up to 3% of compensation, or make a 2% non-elective contribution for all eligible employees.

Solo 401(k) (Self-Employed)

Solo 401(k) plans offer the highest contribution potential for self-employed individuals by combining employee and employer contributions:

Employee Contribution (elective deferral): Up to $23,000
Employer Contribution (profit-sharing): Up to 25% of compensation
Total Combined Maximum: $69,000
Age 50+ Total: $76,500

HSA (Health Savings Account)

While technically not a retirement account, HSAs offer triple tax advantages and can be used as a stealth retirement vehicle:

$4,300
Individual Coverage
$8,550
Family Coverage

Age 55+ Catch-Up: $1,000 additional

Must have a high-deductible health plan (HDHP) to qualify. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.

Strategy Tips for 2026

1

Max out employer match first

Free money you don't want to leave on the table

2

Fund HSA if eligible

Triple tax advantage beats traditional retirement accounts

3

Consider Roth vs Traditional

High earners benefit from traditional (tax deduction now); younger/lower earners may prefer Roth (tax-free growth)

4

Self-employed? Maximize Solo 401(k) or SEP

These plans offer significantly higher limits than traditional IRAs

Need a Personalized Retirement Strategy?

We'll analyze your situation and create a customized plan to maximize your retirement savings while minimizing taxes.

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