Advisors, just a reminder that the IRS has raised the contribution limits for 401(k)s and IRAs for the year 2026.
The new 401(k) limit for 2026 is $24,500, (an increase of $1,000 from the 2025 limit).
The IRA contribution limit for 2026 is $7,500, (a $500 increase from 2025).
Other Important limits:
- 401(k) Catch-up Contributions (Age 50+):
- The 401(k) catch-up limit for those ages 50 and older is rising to $8,000, (up from $7,500 in 2025).
- A higher “super” catch-up of $11,250 applies specifically to employees turning ages 60, 61, 62, and 63.
- The IRA catch-up contribution for those 50 and older will increase to $1,100, (up from $1,000 in 2025).
- High-Earners' Catch-up Contributions (beginning in 2026): Under a rule from the SECURE 2.0 Act, individuals with prior-year wages of $150,000 (increased from the original $145,000 amount) or more will be required to make catch-up contributions on a Roth (after-tax) basis.
- SIMPLE IRA Plans: The contribution limit for SIMPLE IRA plans will increase to $17,000, up from $16,500 in 2025.
- For 2026, the standard catch-up contribution limit for a SIMPLE IRA is $4,000 for individuals ages 50 and older.
- A higher "super" catch-up limit of $5,250 applies specifically to employees turning ages 60, 61, 62, and 63.
- Note that these limits may be different for employees of certain small employers (those with 25 or fewer employees), who may be able to contribute slightly more under provisions of the SECURE 2.0 Act.
Visit the IRS website to learn more:
https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
For Internal Use Only.