2026 Retirement Contribution Limits: How to Maximize Your 401(k) and IRA Savings
As the year winds down, you have only a few months left to fund your 2026 retirement accounts. Any unused room doesn't roll over.
The IRS raised the 401(k) employee contribution limit to $24,500 and the IRA limit to $7,500. There's also a new Roth catch-up rule for high earners, and some states handle contributions differently than the IRS does.
With so many changes to account for, it's vital you speak to your CPA to ensure you maximize your contributions to lower your tax obligations and best prepare for your future.
In this blog, we’re taking you through:
Retirement contribution limits and catch-up rules
IRA and Roth eligibility requirements
Multi-state rules to be aware of
What Are the 2026 Retirement Contribution Limits?
Retirement contribution limits are set by the IRS and adjusted annually for inflation. For 2026, the IRS set the following limits:
Account | 2026 Limit |
401(k)/403(b)/457(b) employee deferral | $24,500 |
Standard catch-up (50+) | +$8,000 ($32,500 total) |
Super catch-up (ages 60–63) | +$11,250 ($35,750 total) |
IRA (traditional + Roth combined) | $7,500 |
IRA catch-up (50+) | +$1,100 ($8,600 total) |
SIMPLE IRA | $17,000 |
Remember that the standard $24,500 401(k) limit is per person, not per plan or per employer. Since that’s separate from an IRA limit, you could technically fund the maximum contribution to both types of account.
Who Qualifies for the Ages 60–63 "Super" Catch-Up?
The “super” catch-up rules apply to people who turned 60, 61, 62, or 63 in 2026.
Your age is tested by the calendar year, and your plan must offer the catch-up rule feature, so you should confirm those details with your HR department before maxing out super catch-up contributions.
If you’re contributing to a Roth account, there may be new rules to abide by as well.
The New Roth Catch-Up Rule: What Higher Earners Must Know
The Roth catch-up wage threshold for 2025, which determines whether 2026 catch-up contributions must be designated Roth, rose from $145,000 to $150,000.
If you’re 50 or older and your 2025 wages from your employer exceeded $150,000, your catch-up money must go into a Roth account (after-tax). The first $24,500 of your contributions can still be pre-tax or Roth. Only the catch-up portion is affected under this new rule.
If your retirement plan does not allow catch-up contributions without a Roth option, you need to make sure you don't make additional contributions past the standard limit for a traditional account.
There are also additional limit rules that apply depending on the type of account you’re contributing to.
IRA Deductions and Roth Eligibility: Check Your Income
The $7,500 IRA limit is the same for everyone, but whether it's deductible or Roth-eligible depends on your income and workplace plan coverage.
Traditional IRA Deduction Phase-Outs
This only applies if you or your spouse are covered by a workplace plan.
The 2026 phase-out ranges (where your deduction shrinks to zero) are:
$81,000-$91,000 for single filers
$129,000–$149,000 for joint filers where the contributing spouse is covered
$242,000–$252,000 where the contributor isn't covered but the spouse is
Roth IRA Income Limits
The Roth phase-out is $153,000–$168,000 for singles and heads of household and $242,000–$252,000 for joint filers. The IRS’s pro-rata rule (when you have pre-tax and after-tax contributions) can trigger surprise taxes, so be sure to consult with a trusted CPA before making additional contributions.
In some cases, states handle retirement contributions differently than the IRS— and you need to be prepared for those changes.
How NY, NJ, and CT Treat Retirement Savings
As a filer in the tri-state area, here are a few ways that the state you live or work in handles retirement contributions differently than the federal level.
New York: NY allows a $20,000-per-taxpayer exclusion at age 59½ or older for private pensions, 401(k) distributions, and IRA withdrawals, with up to $40,000 combined for a couple.
New Jersey: NJ Doesn't let residents exclude deferred compensation and retirement contributions from wages other than 401(k) plans. Its plans include 403(b), 457, SEP, the Thrift Savings Plan, and IRAs.
Connecticut: CT deductions for non-Roth IRA distributions were 50% for 2024, 75% for 2025, and 100% beginning in 2026, with the same income thresholds and phase-out schedules as pension and annuity exemptions.
Residents who live in one state and work in another, such as a New Jersey resident commuting to New York City, are more vulnerable to reporting errors.
Your Year-End Retirement Checklist
To ensure you're maximizing your retirement contribution limits for 2026, follow this end-of-year checklist.
Check Your Year-to-Date Contributions: Divide the remaining time by your remaining paychecks to see how much room you have to increase contributions.
Raise Your Deferral Rate: Payroll changes take a cycle or two to take effect, so update your deferral rate now to ensure contributions come out of 2026 pay.
Check Your Catch-Up Rules: If you're over 50, see how much more you can contribute to hit limits before the end of the year.
Plan Your IRA Funding: The IRA contribution deadline is also your tax return filing deadline. That makes it April 2027, so you can plan a longer funding timeline that goes past December 31st.
Combine Deferrals When Possible: If you change jobs, add every 401(k) together. If you exceed the IRA limit, you can withdraw the excess by the return due date, including extensions, to avoid additional taxes.
Don't Leave Tax-Advantaged Dollars on the Table
Retirement contribution limits are the easy part, but the right pre-tax, Roth, and state-level strategy depends on your income, plan options, and where you live and work
AVM DeMars has been helping our clients in New York, New Jersey, and Connecticut plan for retirement and maximize tax strategies for over 40 combined years. Let us help you ensure you take advantage of every option possible to plan for the future and lower your tax liability.
Contact our team today to schedule a free consultation.
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