401(k) Contribution Limits Rise to $24,500 in 2026, IRA Limit Hits $7,500

Retirement account contribution limits increased for 2026, giving workers more room to save for the future.

The annual contribution limit for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan rose to $24,500, up from $23,500 in 2025. IRA contribution limits increased to $7,500, up from $7,000.

Workers aged 50 and older can make additional catch-up contributions. For 401(k) and similar plans, the catch-up amount is $8,000, bringing the total to $32,500. Workers aged 60 to 63 qualify for a higher catch-up of $11,250, for a total of $35,750. This "super catch-up" provision was introduced to help workers in the final years before retirement accelerate their savings.

A new rule for 2026 affects high earners making catch-up contributions. Workers whose prior-year wages exceeded $150,000 must make any catch-up contributions as Roth contributions. Roth contributions are taxed upfront, but gains and withdrawals in retirement are tax-free.

Financial advisors recommend contributing as much as possible as early as possible, taking full advantage of any employer match. Even small amounts invested early benefit from decades of compounding growth.

The federal estate tax exemption also increased for 2026, rising to $15 million per individual and $30 million for married couples. This change affects estate planning for high-net-worth families.

For Health Savings Accounts, the 2026 limits are $4,300 for individuals and $8,550 for families. HSAs offer a triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.

Financial planners say the new limits are an opportunity for workers who have not been maximizing their contributions to close the gap. Even increasing contributions by one or two percent of salary can make a significant difference over a 20- or 30-year career.