2026 Contribution Limits

Each year the IRS sets the contribution limits as well as specifies various phase out levels for the upcoming year. Here’s a few of the important changes coming in 2026.

Want to skip the details? Check out the bottom of the post for our one-page summary of the new contribution limits.

CHANGES TO CATCH-UP CONTRIBUTIONS

There are big changes coming to catch-up contributions in 2026.

Under the SECURE 2.0 Act, catch-up contributions for those who made more than $145,000 in the prior tax year, must be made on a Roth basis.

This means that you will pay taxes up front on catch up contributions if you meet the above criteria. However, this gives the dollars the opportunity to grow tax free and be withdrawn tax free in retirement.

401(K) / 403(B) / TSP / 457 PLANS

The 2026 contribution limit was increased to $24,500. This means with employer matching you can potentially hit a total contribution of $72,000.

If you are 50+ your catch-up contribution is now $8,000. Anyone aged 60-63 can contribute up to $11,250 in catch-up contributions.

HEALTH SAVINGS ACCOUNTS

If you are covered by an eligible high-deductible health plan, here are the changes coming in 2026.

The individual contribution limit is now $4,400. Families covered by these plans can contribute up to $8,750 to their HSA.

The catch-up contribution for an HSA is $1,000 starting at age 55; however, if you and your spouse are not enrolled in Medicare and participate in an eligible health plan you can both contribute $1,000 as a catch-up. This brings your total contribution limit to $10,750.

If you and your spouse both make catch-up contributions, they must be deposited into separate HSA accounts.

TRADITIONAL & ROTH IRA

If you are eligible to contribute to an IRA your limit is now $7,500 for 2026.

As a result of the SECURE 2.0 Act, the catch-up contribution for anyone aged 50+ received a cost-of-living adjustment up to $1,100.

INCOME PHASEOUT

Traditional IRA income phaseouts apply to the deductibility of your contribution.

Single filers who are also covered by a retirement plan at work can receive a full deduction up to their contribution amount if their Modified Adjusted Gross Income (MAGI) is $81,000 or less with a partial deduction up until $91,000.

Beyond this your contributions are not deductible.

If you are a single filer without coverage from a retirement plan at work, there are no income phaseouts.

Joint filers who are also covered by a retirement plan at work receive a full deduction with income of $129,000 or less. The deduction then phases out entirely beyond a MAGI of $149,000. These limits change for those with a partner who isn’t covered by a retirement plan at work.

While contributions to Roth IRAs are not deductible, they do utilize the same phaseouts to limit who can contribute to the accounts.

If your income is beyond these limits, you may still be able to fund your Roth IRA via an indirect Roth contribution.

DEFINED BENEFIT

Beginning in 2026, the annual limit for Defined Benefit plans is $290,000.

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Not sure where you stand going into 2026? Reach out to us directly via email at info@deleonwealth.com.

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DeLeon Wealth, LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

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Sources:

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