401(k) Contribution Limits Rise to $24,500 in 2026 With New Roth Catch-Up Rule
The annual contribution limit for 401(k), 403(b), and 457 retirement plans increased to $24,500 in 2026, up from $23,500 in 2025. IRA limits also rose to $7,500. A new rule requires high earners to make catch-up contributions as Roth contributions, meaning the money is taxed upfront but grows tax-free.
Workers saving for retirement can contribute more to their accounts in 2026 after the IRS raised contribution limits for several types of retirement plans.
The annual contribution limit for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan increased to $24,500, up from $23,500 in 2025. IRA contribution limits rose to $7,500, up from $7,000.
Workers aged 50 and older can make additional catch-up contributions. The catch-up limit for 401(k), 403(b), and 457 plans is $8,000. Workers aged 60 to 63 can contribute an extra $3,250 on top of that, for a total catch-up of $11,250. IRA holders aged 50 and older can contribute an additional $1,100.
A new rule for 2026 affects high earners who want to make catch-up contributions. If a worker's prior-year wages subject to Federal Insurance Contributions Act taxes exceeded $150,000, any catch-up contributions must be made as Roth contributions. Roth contributions are taxed upfront but grow tax-free and can be withdrawn tax-free in retirement.
Financial planners say the higher limits give workers more room to build retirement savings, especially those who started saving late or who had gaps in their careers.
The changes come as a new survey from the Employee Benefit Research Institute found that only 64 percent of Americans feel confident they will have enough money to retire comfortably, down from the previous year. Rising housing costs and healthcare expenses are the top barriers to saving.
