2026 401(k) and IRA Contribution Limits

What Are the 2026 Limits?

For 2026 the employee contribution limit for 401(k), 403(b), 457, and TSP plans is $24,500. That works out to about $2,042 per month for someone maxing out over the full year. The limit for Traditional and Roth IRAs is $7,500, or $625 per month. These are the elective deferral amounts you choose, separate from any employer match, which does not count against your personal cap.

Catch Up Contributions for Savers 50 and Older

If you are 50 or older, you can add more on top of the standard limits. The 2026 catch up for 401(k)-style plans is $8,000, bringing the total to $32,500 for savers 50 to 59 and 64 and older. For savers aged 60 to 63, the catch up rises to $11,250, for a total of $35,750. The IRA catch up is $1,100, bringing the total to $8,600 for savers 50 and older.

SIMPLE and SEP Plan Limits

SIMPLE IRA plans, which are common at smaller employers, have a 2026 employee limit of $17,000, with a $4,000 catch up for savers 50 and older. SEP IRAs are different: they are funded entirely by the employer, with a limit of 25% of your compensation capped at $72,000 for 2026. If you are self employed, the SEP cap is what your own contributions can reach.

Why Contribution Limits Matter

Hitting the limit each year is the fastest way to grow a nest egg because the money grows tax deferred or tax free and often earns an employer match on top. But exceeding a limit triggers a penalty, so it is worth knowing your number. The calculator lets you enter a monthly contribution, and comparing it against your annual limit tells you whether you have room to save more each year.

Where to Check the Official Numbers

The figures above come from the IRS announcement for 2026. The IRS publishes the limits every year in its newsroom and maintains a standing page of cost of living adjustments for retirement contributions. Limits can change annually, so check the official sources before you set your savings rate.