The IRS has officially released the cost-of-living adjustments for 2026 retirement plans. The good news? You have more room to save for your future.
However, there are also significant structural changes regarding how you can make catch-up contributions. We’ve broken down the numbers and the new rules to help you prepare.
New Roth Catch-Up Requirement
Effective for plan years beginning in 2026, a major provision from the SECURE 2.0 Act takes effect.
If your wages exceeded $150,000 in 2025, any catch-up contributions you make must be designated as Roth contributions.
- What this means: You will pay taxes on these catch-up contributions now, rather than deferring them until retirement.
- Who this affects: Employees aged 50 or older earned more than $150,000 in FICA wages from their specific employer in the previous year.
- The exception: If you earned $150,000 or less, you retain the choice between pre-tax or Roth for your catch-up contributions.
The Numbers at a Glance
Here is a quick comparison of the limits for the most common retirement plans.
| Limit Description | 2026 Limit | 2025 Limit |
| 402(g) Elective Deferral (Standard limit for 401(k)/403(b)) | $24,500 | $23,500 |
| Age 50 Catch-Up (Additional amount for age 50+) | $8,000 | $7,500 |
| Total 415 Limit (Total employee + employer contributions) (Plus catch-up if eligible.) | $72,000 | $70,000 |
| Compensation Limit (Max salary considered for plan) | $360,000 | $350,000 |
Special “Super” Catch-Up (Ages 60-63)
For those specifically aged 60, 61, 62, or 63, a higher catch-up limit of $11,250 is available to help you sprint toward the finish line.
Highly Compensated Employee (HCE): The threshold for HCE status remains flat at $160,000.
IRAs and SIMPLE Plans:
Individual Retirement Arrangements (IRAs)
- Annual Limit: Increases to $7,500 for both Traditional and Roth IRAs.
- Catch-Up (Age 50+): Increases slightly to $1,100.
SIMPLE Retirement Accounts
- General Limit: Increases to $17,000.
- Catch-Up (Age 50+): Increases to $4,000.
Updated Income Phase-Outs for IRAs
Your ability to contribute directly to a Roth IRA or deduct Traditional IRA contributions depends on your income. Ranges have shifted for 2026:
- Roth IRA (Single/HOH): $153,000 – $168,000
- Roth IRA (Married filing jointly): $242,000 – $252,000
- Traditional IRA Deductibility (Single, if covered by a workplace plan): $81,000 – $91,000
- Traditional IRA Deductibility (Married filing jointly, if covered by a workplace plan): $129,000 – $149,000
What Should You Do Next?
These new limits provide an opportunity to accelerate your retirement savings. It may be a good time to review your current contribution strategy to ensure you are taking full advantage of these increases. If you have questions about how these changes affect your savings strategy for 2026, please reach out to a Saville team member.