Many IRA and employer retirement plan limits are indexed for inflation, and several key numbers are rising again for 2026. Here’s a breakdown of what savers need to know.
How Much Can You Save in an IRA?
The maximum amount you can contribute to a traditional or Roth IRA in 2026 will increase to $7,500 (or 100% of your earned income, if less), up from $7,000 in 2025. For individuals age 50 or older, the catch-up contribution rises to $1,100, up from $1,000.
You may contribute to both a traditional IRA and a Roth IRA, but total contributions cannot exceed annual limits.
Can You Deduct Traditional IRA Contributions?
If neither you nor your spouse is covered by a workplace retirement plan, your traditional IRA contributions are generally fully deductible.
If you’re married filing jointly but not covered by an employer plan — and your spouse is — you can claim:
- Full deduction if your 2026 MAGI is $242,000 or less
- Partial deduction if MAGI is between $242,000 and $252,000
- No deduction if MAGI is $252,000 or more
For those who are covered by an employer plan, deductibility depends on income and filing status:
| Filing Status | Deduction is Limited if MAGI Is: | Deduction Eliminated at MAGI: |
|---|---|---|
| Single or Head of Household | $81,000 – $91,000 | $91,000+ |
| Married Filing Jointly or Qualifying Widow(er) | $129,000 – $149,000 (combined) | $149,000+ |
| Married Filing Separately | $0 – $10,000 | $10,000+ |
Can You Contribute to a Roth IRA?
Roth IRA income limits are also increasing in 2026. You can make the full contribution ($7,500, or $8,600 if 50+) if your MAGI is:
- Less than $153,000 (Single/Head of Household)
- Less than $242,000 (Married Filing Jointly)
Phaseout ranges:
| Filing Status | Contribution Limited Between: | No Roth Contribution If MAGI Is: |
|---|---|---|
| Single or Head of Household | $153,000 – $168,000 | $168,000+ |
| Married Filing Jointly or Qualifying Widow(er) | $242,000 – $252,000 (combined) | $252,000+ |
| Married Filing Separately | >$0 – <$10,000 | $10,000+ |
How Much Can You Save in a Work-Based Plan?
If you participate in an employer-sponsored plan, your savings opportunities are increasing again.
401(k), 403(b), 457(b), and TSP
- Elective deferral limit: $24,500 (up from $23,500 in 2025)
- Catch-up (age 50–59 or 64+): $8,000 (up from $7,500)
- “Super” catch-up (age 60–63): $11,250 (unchanged)
SIMPLE IRA and SIMPLE 401(k)
- Contribution limit: $17,000 (up from $16,500)
- Catch-up (50+): $4,000 (up from $3,500)
- Super catch-up (age 60–63): $5,250 (unchanged)
(Some small employers may offer higher SIMPLE limits.)
If You Participate in Multiple Plans
Your total combined deferrals to 401(k), 403(b), and SIMPLE plans cannot exceed the annual limit — but 457(b) deferrals are separate.
Example:
Someone participating in a 403(b) and a 457(b) plan could save $49,000 in 2026 (plus any catch-ups).
Total Defined Contribution Plan Limit
The maximum that can be allocated to your account — including both your contributions and employer contributions — rises to $72,000 in 2026 (up from $70,000).
Compensation and HCE Limits
- Maximum compensation considered: $360,000 (up from $350,000)
- Highly compensated employee (HCE) threshold: $160,000 (unchanged)
Prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Services, Inc.