Saving for retirement is one of the smartest long-term moves you can make and every year, the IRS adjusts retirement contribution limits to account for inflation. That means 2026 brings new opportunities to save more in tax-advantaged accounts like IRAs and 401(k)s.
Whether you’re getting started with retirement planning or fine-tuning your strategy, understanding the updated 2026 contribution limits can help you make more confident financial decisions and potentially grow your money faster over time.
2026 IRA Contribution Limits: What You Can Put Away This Year
An Individual Retirement Account (IRA) is a popular retirement savings tool because it offers tax benefits and flexibility, especially for people who don’t have access to an employer-sponsored plan, or those who want to save beyond their workplace retirement plan.
Standard IRA Contribution Limit for 2026
For 2026, the IRS increased the IRA contribution limit to:
- $7,500 per year for individuals under age 50
- $8,600 per year for individuals age 50 and older (includes catch-up contributions)
These limits apply to the combined total of your contributions to both:
- Traditional IRA
- Roth IRA
That means you can split your IRA contributions between both account types but the total cannot exceed the annual cap.
Roth IRA Income Limits in 2026
While anyone with earned income may be able to contribute to a Traditional IRA (depending on rules), Roth IRA eligibility depends on your income.
If you earn above certain thresholds, the amount you can contribute to a Roth IRA may be reduced—or eliminated.
2026 Roth IRA Phase-Out Ranges
For 2026, the Roth IRA contribution phase-out ranges increased to:
- Single filers: $153,000 to $168,000
- Married filing jointly: $242,000 to $252,000
If your income falls inside these ranges, you may qualify for only a partial Roth IRA contribution. If you’re above the maximum range, you generally won’t be able to contribute directly to a Roth IRA that year.
2026 401(k) Contribution Limits: Bigger Opportunities Through Your Employer Plan
If your employer offers a retirement plan like a 401(k) (or similar plans like a 403(b) or governmental 457(b)), your annual contribution limit is significantly higher than an IRA, making this one of the best ways to build retirement savings faster.
Standard 401(k) Employee Contribution Limit for 2026
For 2026, the IRS increased the employee deferral limit to:
- $24,500 per year
This limit applies to contributions you make through payroll deductions, whether they’re:
- Pre-tax (Traditional 401(k))
- After-tax (Roth 401(k), if offered by your employer)
Catch-Up Contributions for 2026: Extra Savings for Age 50+
Catch-up contributions are designed to help older workers boost retirement savings, especially if they started saving later in life or want to maximize retirement contributions during their peak earning years.
401(k) Catch-Up Contribution Limit in 2026
If you are age 50 or older, you can contribute an additional amount to your 401(k):
- Catch-up limit: $8,000
- Total possible 401(k) contribution (50+): $32,500
That $32,500 total can make a big impact over time, especially when paired with potential employer matching contributions.
Special Catch-Up Rule for Ages 60–63 in 2026
One of the most important retirement updates in recent years is a higher catch-up contribution for certain ages, sometimes referred to as a “super catch-up.”
Higher Catch-Up Contributions for Ages 60–63
For individuals who turn 60, 61, 62, or 63 in 2026, the higher catch-up amount is:
- $11,250
This enhanced catch-up contribution can be a major planning opportunity for people who want to accelerate retirement savings before stepping into their mid-60s.
IRA vs. 401(k) for 2026: Which One Should You Prioritize?
Both accounts are valuable, but they serve different purposes. Many people benefit most by using both together.
A Simple Way to Think About It
Here’s a straightforward approach many savers follow:
- Start with your 401(k) (especially if your employer offers a match)
- Then contribute to an IRA for added flexibility and possible tax advantages
- Finally, go back and increase your 401(k) contribution if you still have room in your budget
Since 401(k) limits are much higher than IRA limits, contributing more to a workplace plan can allow you to build retirement savings faster, particularly if you’re aiming for a specific retirement timeline.
Why Knowing the 2026 Limits Matters
The contribution limits aren’t just “numbers”, they’re powerful tools.
Benefits of maximizing retirement limits
By working toward the 2026 maximums, you can:
- Reduce taxable income (with Traditional options, if eligible)
- Build wealth in a tax-advantaged way over time
- Take advantage of employer matching (free money)
- Improve retirement readiness and long-term financial security
- Create a consistent savings habit year after year
Even if you can’t reach the max limit, increasing your contributions little by little can still have a major long-term impact.
Final Thoughts: Make 2026 Your Strongest Retirement-Saving Year Yet
The IRS contribution limit increases for 2026 offer a great chance to strengthen your retirement strategy, whether you’re contributing to an IRA, a 401(k), or both. With higher limits, better catch-up options, and more planning flexibility, 2026 can be the year you take real momentum toward your financial future.
Ready to Strengthen Your Retirement Plan?
If you’re ready to make smarter retirement decisions in 2026, whether that means increasing your 401(k) contributions, opening an IRA, or mapping out a long-term savings strategy North Jersey Federal Credit Union (NJFCU) is here to help.
Related Reading
Planning for Your Future: Why an Individual Retirement Account (IRA) at NJFCU Is a Smart Choice