The IRS raised most retirement plan limits for 2026. Here's a quick reference for you and your employees.
2026 limits at a glance
| Limit | 2026 |
|---|---|
| 401(k), 403(b), most 457 plans: employee deferral | $24,500 |
| Catch-up, age 50 and over | $8,000 |
| Enhanced catch-up, ages 60 through 63 | $11,250 |
| Total employer + employee contributions (defined contribution) | $72,000 (not counting catch-ups) |
| Traditional and Roth IRA | $7,500 |
| IRA catch-up, age 50 and over | $1,100 |
| SIMPLE IRA / SIMPLE 401(k) deferral | $17,000 |
| SIMPLE catch-up, age 50 and over | $4,000 |
The new Roth catch-up rule
Starting in 2026, employees whose prior-year FICA wages from the employer exceeded $150,000 must make any 401(k) catch-up contributions as Roth (after-tax) contributions. If your plan doesn't offer a Roth option, those employees may not be able to make catch-up contributions at all. Business owners should confirm with their plan provider that payroll is set up correctly.
Roth IRA income limits
Direct Roth IRA contributions phase out between $153,000 and $168,000 of modified adjusted gross income for single filers and between $242,000 and $252,000 for married couples filing jointly.
Which plan fits a small business?
- SEP IRA: simple, employer-funded, flexible year to year.
- SIMPLE IRA: low cost, employee deferrals with a required employer contribution.
- Solo 401(k): for owners with no employees other than a spouse; high contribution potential.
- Traditional or safe harbor 401(k): the most flexibility for growing teams.
Choosing a plan affects payroll, cash flow and your tax bill. We can help you compare options during your tax planning review.
This article is general information, current as of September 2026, and is not tax, legal or financial advice for your situation. Tax rules change often. Talk with us before acting on anything here.