2026 Retirement Contribution Limits: What NY, NJ & CT Savers Need to Know

With every new year comes new opportunities to plan for your future, namely through retirement contributions. Although you may want to add every spare dollar into your retirement account, the IRS places limits on maximum contribution amounts.

However, they recently announced increased limits on 401ks, IRAs, catch-up contributions, and SIMPLE (Savings Incentive Match Plan for Employees) plans to help you keep up with inflation tax year 2026. Whether your goal is to lower your taxable income, take advantage of catch-up contributions as you approach retirement, or simply give “future you” the biggest cushion possible, you’ll want to be aware of these new changes.

Keep reading to learn what the updated IRS retirement contributions are and if they apply to you. 

The Key Numbers for 2026 Retirement Contribution Limits

Essentially, all major retirement account limits have increased for the 2026 tax year. Let’s look at how each account type is affected.

IRA Contribution Limits

You can now contribute up to $7,500 per year to your Traditional or Roth IRA. Under the SECURE 2.0 Act, those 50 and over can also make an additional $1,100 in catch-up contributions, for a total of $8,600. 

Be aware that these contributions apply collectively to Traditional and Roth IRAs, not per account. If you have multiple accounts, you'll need to be careful not to exceed the limit in totality.

401(k), 403(b), 457(b) and Thrift Savings Contribution Limits

Starting in 2026, your basic elective deferral limit— the amount of your paycheck you can contribute to employee-sponsored 401(k), 403(b), and 457(b)—increases to $24,500. This limit applies whether contributions are made pre-tax or Roth. 

For those enrolled in the federal government's Thrift Savings plan, you can contribute up to $8,000 for tax year 2026. 

Changes to Catch-Up Contributions

As you get closer to retirement age (generally 59 ½) , the IRS allows you to contribute extra to retirement accounts—so long as your employer has adopted SECURE 2.0 rules. How much you contribute depends on your current age and retirement plan. 

Standard Catch-Up Contributions

If you will be 50 years or older in 2026, you can contribute an additional $8,000 to your 401(k), 403(b), and 457(b) account on top of the base $24,500. Remember, this maximum is before employer contributions kick in.

“Super Catch-Up” Contributions

If you'll be between the ages of 60 and 63 and 2026, you can take advantage of even higher catch-up limits. You can contribute up to $11,250 within 401(k), 403(b), and 457(b) plans, for a total of $35,750. 

An Important Note:

High-earners must designate all catch-up contributions as Roth (post-tax) if your prior year wages exceed the threshold of $150,000 for 2026. 

Additional Retirement Contribution Limits

As of 2026, the IRS increased the combined employer and employee annual addition limit to $72,000. This includes your elective deferrals, matching contributions, and profit-sharing contributions.

They also increased limits for SIMPLE Plans. Under the new rules:

• SIMPLE plan contribution limits increase to $17,000 in 2026

• Standard catch-up (age 50+) increases to  $4,000

• Enhanced catch-up (age 60–63) increases to $5,250

Planning for retirement involves more than simply funneling money into an account. To truly maximize your retirement contributions in a way that sets you up for success while simultaneously lowering your tax obligation, you need expert planners on your side.

Make the Most of the 2026 Retirement Contribution Changes

New contribution limits can create meaningful tax savings — but only if they’re applied correctly. Turn to AVM DeMars to make sure they are. With years of tax advocacy and planning experience, our team makes sure that you take advantage of every opportunity to optimize your taxes and plan for the long term.

Reach out today to get a head start on planning!