The IRS raised most retirement account limits for 2026. If you're trying to shelter as much income as possible from taxes, these are the numbers that matter.
The 2026 limits
| Account | 2026 limit |
|---|---|
| 401(k), 403(b), most 457 plans (employee) | $24,500 |
| Catch-up, age 50+ | $8,000 |
| "Super" catch-up, ages 60–63 | $11,250 |
| Traditional and Roth IRA | $7,500 |
| IRA catch-up, age 50+ | $1,100 |
| HSA, self-only coverage | $4,400 |
| HSA, family coverage | $8,750 |
What changed
The employee deferral limit for 401(k)-type plans rose to $24,500, and the IRA limit rose to $7,500. The IRA catch-up is now indexed to inflation, which is why it moved off its long-time $1,000 level to $1,100.
There's also a new wrinkle for high earners: under SECURE 2.0, workers who earned more than a set threshold in FICA wages the prior year must make catch-up contributions to a Roth account rather than pre-tax. If your plan doesn't offer a Roth option, ask your HR team how they're handling it.
How to prioritize
If you can't max everything, a common order is:
- Capture the full employer match. It's an instant return on your money.
- Fund an HSA if you have a qualifying high-deductible health plan. It's the only account that's tax-advantaged going in, while growing, and coming out (for medical costs).
- Fund a Roth IRA, or use a backdoor Roth if your income is too high to contribute directly.
- Max out the 401(k).
- Self-employed? A solo 401(k) or SEP IRA can let you shelter far more.
Pre-tax or Roth?
The question is whether your tax rate is higher now or later. Early-career savers and anyone expecting higher future income often favor Roth. Peak earners often favor pre-tax and plan Roth conversions in lower-income years. Many people do best with a mix, so they can control their taxable income in retirement.
Get it right the first time
Mistakes here, like excess contributions, a backdoor Roth that triggers the pro-rata rule, or a missed match, are common and avoidable. If you want a second set of eyes, get matched with a retirement specialist.