2026 Contribution Limits Are Here: How Much You Can Save in Your 401(k) and IRA
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If you love fresh savings news as much as I do, today's announcement is a good one.
The IRS just confirmed higher contribution limits for 401(k)s, IRAs, and other retirement plans in 2026.
Whether you're maxing out your plan every year or just getting started, these new limits matter. Here are the details everyone with a 401(k) and IRA need to know.
401(k) limit increases to $24,500
For 2026, employees can now contribute up to $24,500 to their 401(k), 403(b), or most 457 plans. This is up $1,000 from 2025.
That means you can funnel an extra grand of tax-advantaged money into your future starting Jan. 1, 2026.
If you're age 50 or older, the catch-up contribution limit also rises, jumping from $7,500 to $8,000.
And for those ages 60-63 who qualify for the special "super catch-up" under the SECURE 2.0 Act, the cap remains at $11,250.
Here's an overview of the changes from this year to next:
| Contribution type | 2025 Limit | 2026 Limit |
|---|---|---|
| 401(k), 403(b), 457 employee contributions | $23,500 | $24,500 |
| Catch-up (age 50+) | $7,500 | $8,000 |
| Super catch-up (ages 60–63) | $11,250 | $11,250 |
| Combined employer + employee max | $70,000 | $72,000 |
These numbers reflect the latest cost-of-living adjustments tied to inflation. Even a modest 2%-3% bump can make a noticeable difference when you stretch it over decades of compounding growth.
2026 IRA contribution limit: $7,500
Traditional and Roth IRAs are also getting a lift.
For 2026, the total contribution limit for traditional and Roth IRAs increases to $7,500 for savers under 50. That's $500 more than the 2025 limit.
And if you're age 50 or older, your catch-up rises from $1,000 to $1,100, bringing your total potential IRA contribution to $8,600 next year.
Remember, that $7,500 IRA limit is the combined total you can put across all IRAs. You could do $4,000 to a Roth and $3,500 to a traditional, for instance -- but not $7,500 to each.
Small raise or not, the bump is worth taking advantage of. IRAs are one of the easiest accounts to open and automate, and you can do it in minutes. Check out the top IRA accounts here -- some even offer contribution match programs!
Why this matters more than you think
Raising the limits might not sound like much on paper -- a few hundred here, a thousand there -- but these small increases are the fuel that powers long-term wealth.
If you're 35 years old and invest that extra $1,000 each year until age 65 at an 8% average annual return, you'll have roughly $110,000 more in your retirement balance.
Even if you can't max out your retirement accounts, every extra dollar saved helps your balance grow bigger for retirement. And the tax advantages make all those dollars more powerful.
These new 2026 limits are your signal to revisit your payroll settings, top off that IRA, and give your savings strategy a small-but-mighty upgrade.
Curious which brokerages and retirement accounts make it easiest to invest automatically? Check out our top picks here.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.