IRA & Retirement Limits (2026)

The IRS released the 2026 retirement plan contribution limits in Notice 2025-67. Key changes vs. 2025: 401(k)/403(b)/457(b) elective deferrals up $1,000 to $24,500. IRAs up $500 to $7,500. The age 50+ catch-up rises to $8,000 (401(k)) and $1,100 (IRA). The age 60-63 super catch-up of $11,250 introduced in 2025 remains in place. Beginning in 2026, employees who earned more than $150,000 in FICA wages from the sponsoring employer in the prior year MUST make their catch-up contributions on a Roth (after-tax) basis. This guide covers all major retirement plan limits for 2026 and the SECURE 2.0 Act mechanics that practitioners need to flag for clients.

Traditional IRA - Contribution Limits and Deductibility

The Traditional IRA contribution limit applies to the combined total of Traditional and Roth IRA contributions. A taxpayer cannot contribute $7,500 to a Traditional IRA and another $7,500 to a Roth IRA in the same year - the aggregate is $7,500.

Traditional IRA Deductibility Phase-Out (2026)

If the taxpayer (or spouse) is covered by a workplace retirement plan, the deductibility of Traditional IRA contributions phases out at income thresholds:

Above the upper end of the phase-out range, no deduction is available - but the contribution can still be made on a non-deductible basis. Non-deductible contributions create basis tracked on Form 8606.

Roth IRA - Income Phase-Out

Above the upper end, direct Roth IRA contributions are not permitted. The Backdoor Roth strategy (non-deductible Traditional IRA contribution + Roth conversion) remains available; Treasury and IRS have not weighed in definitively on this strategy, but it has been used extensively for over a decade.

401(k), 403(b), 457(b), TSP - Elective Deferrals

The §415(c) total includes employee elective deferrals, employer match, profit-sharing contributions, and after-tax contributions. With catch-up included, the total can reach $80,000 (age 50+) or $83,250 (ages 60-63). The total cannot exceed 100% of compensation.

SECURE 2.0 - Mandatory Roth Catch-Up for High Earners

Starting January 1, 2026, employees aged 50 or older who earned more than $150,000 in FICA wages from the sponsoring employer in the prior calendar year must make their catch-up contributions as designated Roth (after-tax) contributions. Pre-tax catch-up is not available for these employees. IRC §414(v)(7).

Mechanical points:

• The $150,000 threshold is FICA wages (Box 3 of Form W-2), not gross wages or AGI
• The threshold is COLA-adjusted; the 2026 amount is $150,000 (up from the original $145,000)
• The lookback is to the prior year. 2026 Roth-catch-up status is based on 2025 W-2 Box 3
• The rule applies to employer-sponsored plans (401(k), 403(b), 457(b), TSP). It does NOT apply to IRAs or SIMPLE plans
• If the employer's plan does NOT offer a Roth feature, high earners cannot make catch-up contributions at all - the employer must add Roth or those employees forfeit the catch-up
• The base elective deferral can still be split between pre-tax and Roth at the employee's election
• Final regulations were issued September 16, 2025; reasonable good-faith implementation is permitted before 2027

SECURE 2.0 - Super Catch-Up for Ages 60-63

For employees who turn 60, 61, 62, or 63 by the end of the calendar year, the catch-up limit is the greater of $10,000 or 150% of the regular catch-up. For 2026, the super catch-up is $11,250. This replaces (not adds to) the standard $8,000 catch-up. Total contribution: $24,500 + $11,250 = $35,750.

Once the employee turns 64, the super catch-up no longer applies and the standard $8,000 catch-up resumes. Plan must offer the super catch-up feature; some plans have not yet adopted it.

SIMPLE IRA / SIMPLE 401(k)

The Roth catch-up requirement for high earners does NOT apply to SIMPLE plans.

SEP IRA

SEP IRA contributions are limited to the lesser of 25% of compensation or $72,000 for 2026 (the §415(c) limit). For self-employed taxpayers, the deduction is computed on a net-of-SE-tax basis, effectively about 20% of net SE earnings (Schedule C / Schedule K-1).

HSA (Health Savings Account)

HSA contributions are deductible above-the-line, not subject to AGI phase-outs, and growth is tax-free. Withdrawals for qualified medical expenses are tax-free. After age 65, withdrawals for non-medical purposes are taxed as ordinary income (no 20% penalty). HSAs are arguably the most tax-favored account in the Code.

Saver's Credit (Retirement Savings Contributions Credit)

Low and moderate income taxpayers may claim a non-refundable credit equal to 10%, 20%, or 50% of contributions to retirement plans (max $1,000 single, $2,000 joint). 2026 income limits:

• Joint: up to $80,500 AGI
• Head of Household: up to $60,375
• Single / MFS: up to $40,250

RMDs (Required Minimum Distributions)

SECURE 2.0 raised the RMD start age to 73 (effective for those turning 72 in 2023 or later) and to 75 starting in 2033. The RMD is computed annually using the IRS Uniform Lifetime Table (or Joint Life Table where the spouse is more than 10 years younger and is the sole beneficiary).

Roth IRAs are not subject to RMDs during the owner's lifetime. Roth 401(k) accounts were subject to RMDs pre-SECURE 2.0; effective 2024, designated Roth accounts in employer plans are no longer subject to RMDs during the owner's lifetime.

Qualified Charitable Distributions (QCDs)

Taxpayers age 70½ or older can direct up to $111,000 (2026, indexed; per IRS Notice 2025-67) annually from a Traditional IRA directly to a qualified public charity. The QCD is excluded from gross income and counts toward the RMD. SECURE 2.0 also created a one-time election to treat up to $55,000 (2026) as a QCD to a charitable remainder trust or charitable gift annuity.

QCDs bypass the new OBBBA 0.5% AGI floor on charitable deductions and the 35% benefit cap, since they never enter gross income in the first place. For donors over 70½ with substantial IRA balances, the QCD is meaningfully more valuable than equivalent cash giving in 2026 and beyond.

Where to Calculate - Trusted Third-Party Tools

For modeling specific scenarios, the following calculators from established institutions are reliable. CPA Validated does not endorse any specific provider; these are listed because they are widely used, transparent in methodology, and updated for current law: