In my experience working with retirement plan sponsors and professionals across all stages of wealth building, I’ve seen how even small updates to IRS contribution limits can create meaningful opportunities—if they’re understood and applied strategically.
Each fall, the IRS releases updated retirement contribution limits—and while the numbers may appear dry, these annual adjustments hold real power for long-term wealth building.
The 2026 limits are now official, and for high earners and retirement savers alike, they present fresh opportunities for tax-efficient planning.
Here’s What’s Changing for 2026
Below is a comprehensive chart showing the updated retirement plan contribution limits for 2026, alongside 2025 levels:
| IRS Contribution Category | 2025 | 2026 | Notes |
| Individual 401(k) Contributions | 23,500 | 24,500 | |
| Individual 401(k) Catch-up (50+) | 7,500 | 8,000 | Must be Roth if the person earned more than $150k in FICA wages in 2025 at the same company (does not apply to IRAs) |
| Individual 401(k) Super Catch-up (60-63) | 11,250 | 11,250 |
| *Total contribution Limit for 401(k) Plans (<50) | 70,000 | 72,000 | |
| *Total contribution Limit for 401(k) Plans (50+) | 77,500 | 80,000 |
| *Total contribution Limit for 401(k) Plans (60-63) | 81,250 | 83,250 |
| IRC Compensation Limit for 401(k) Plans | 350,000 | 360,000 |
| IRA | 7,000 | 7,500 |
| **IRA Catch-Up (50+) | 1,000 | 1,100 |
| SIMPLE IRA | 16,500 | 17,000 |
| SIMPLE IRA Catch-Up (50+) | 3,500 | 4,000 |
| SIMPLE IRA Super Catch-Up (60-63) | 5,250 | 5,250 |
*Includes allowable employer contributions (match, profit sharing)
**No super catch-up applies to IRAs—only the standard amount
Why These Increases Matter to Your Financial Future
For individuals in their peak earning years or business owners maximizing retirement savings, these higher limits create significant opportunities:
Tax reduction today. Increased pre-tax deferrals allow you to reduce your current taxable income while building retirement assets.
Tax-free growth potential tomorrow. Greater Roth contribution capacity enables long-term tax-free accumulation and qualified distributions.
Business owner advantages. Higher total limits provide expanded flexibility for employer match and profit-sharing contributions within business retirement plans.
Accelerated savings for near-retirees. Super catch-up contributions offer those aged 60–63 the ability to meaningfully close savings gaps in critical years.
Key Planning Reminders for 2026
Mandatory Roth catch-ups for high earners. If you’re over 50 and earned more than $150,000 in FICA wages in 2025, your 401(k) catch-up contributions must be made on a Roth basis per SECURE Act 2.0 provisions.
Super catch-up limitations. The enhanced catch-up provision applies only to employer-sponsored plans like 401(k)s and SIMPLE IRAs—not to Traditional or Roth IRAs.
Annual indexing matters. These limits adjust yearly for inflation. Staying current ensures you capture your full available contribution space and compound the benefits over time.
How Gatewood Helps You Plan Proactively
At Gatewood Wealth Solutions and Gatewood Tax & Accounting, we take a multi-disciplinary approach to retirement savings that goes far beyond tracking IRS limits. Our comprehensive planning coordinates:
- Strategic tax positioning using Holistiplan’s advanced tax forecasting to optimize your tax brackets and Roth conversion opportunities
- Cash flow modeling through eMoney’s 5-year projections and comprehensive Retirement Income Planning
- Business owner strategies including 401(k), SIMPLE, and SEP contribution design for entrepreneurs and corporate executives
- High-income planning featuring backdoor Roth IRA strategies that respect IRS aggregation rules and pro-rata calculations
We don’t just react to IRS changes—we proactively integrate them into your holistic financial plan, aligning your savings strategy with your long-term goals and values.
Make the Most of Your 2026 Planning Window
Contribution limits are merely numbers on a page unless you have a strategic plan to leverage them effectively. Whether you’re approaching retirement or navigating your peak earning years, now is the time to ensure these increases work for you.
Let’s discuss how the 2026 contribution limit increases fit into your comprehensive financial strategy.
Schedule your planning meeting with Gatewood Wealth Solutions or contact Gatewood Tax & Accounting to develop a tax-optimized contribution strategy tailored to your unique situation.
At Gatewood, we believe that retirement savings is not just about maximizing contributions—it’s about aligning every dollar with your life’s purpose. Our team of credentialed professionals is here to guide you through each planning opportunity with expertise and care, helping you build enduring wealth with confidence for life’s key moments. Because at Gatewood, we don’t just plan for retirement—we plan for what truly matters to you.
Important Disclosures
The information provided is for educational purposes and should not be considered specific tax or investment advice. Please consult with qualified professionals regarding your individual circumstances.
A Roth IRA conversion—sometimes called a backdoor Roth strategy—is a way to contribute to a Roth IRA when income exceeds standard limits. The converted amount is treated as taxable income and may affect your tax bracket. Federal, state, and local taxes may apply. If you’re required to take a minimum distribution in the year of conversion, it must be completed before converting.
To qualify for tax-free withdrawals, you must generally be age 59½ and hold the converted funds in the Roth IRA for at least five years. Each conversion has its own five-year period, and early withdrawals may be subject to a 10% penalty unless an exception applies. Income limits still apply for future direct Roth IRA contributions.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. Tax and Accounting services offered through Gatewood Tax and Accounting, a separate legal entity and not affiliated with LPL Financial. LPL Financial does not offer tax advice or tax and accounting related services
