2026 Contribution Limits

Maximize tax-advantaged retirement savings with IRS annual limits

Written by Jere Salmisto · Reviewed by CalcFi Editorial·Last verified: 2026-05-13
TL;DR

In 2026, the IRS sets the 401(k) employee elective deferral at $23,500, the Traditional/Roth IRA limit at $7,000, and the HSA family limit at $8,550 (self-only $4,300). Workers age 50+ get a $7,500 401(k) catch-up and a $1,000 IRA catch-up. HSA account holders age 55+ add a $1,000 catch-up.

Source: IRS Revenue Procedure (2026)

401(k) Contribution Limits

Contribution Type2026 Limit
Employee (Traditional & Roth combined)$23,500
Age 50+ Catch-up$7,500
Age 60-63 Additional Catch-up (SECURE 2.0)$11,250
Max including employer match$69,000

IRA Contribution Limits

Contribution Type2026 Limit
Traditional & Roth IRA (combined)$7,000
Age 50+ Catch-up$1,000

Health Savings Account (HSA) Limits

Contribution Type2026 Limit
Individual coverage$4,300
Family coverage$8,550
Age 55+ Catch-up$1,000

Changes from 2025

401(k) Limit Change

$-1,000

24,500 → 23,500

IRA Limit Change

$0

7,000 → 7,000

HSA (Family) Change

$0

8,550 → 8,550

Maximizing Your Contributions

Tax-advantaged retirement accounts offer powerful ways to reduce taxable income and build wealth. The IRS sets annual limits to prevent misuse of these valuable accounts. Staying within limits ensures your contributions are deductible and avoid penalties.

401(k) Strategy

A $23,500 annual contribution (combined employee + employer contributions) can reduce your taxable income significantly. If your employer matches, this is free money—prioritize reaching the match threshold. If you're age 50+, you can contribute an additional $7,500 in catch-up contributions.

IRA Options (Traditional vs Roth)

You can contribute up to $7,000 to either a Traditional or Roth IRA, or split between them. Choose Traditional for immediate tax deductions if you're in a high tax bracket; choose Roth if you expect to be in a higher bracket in retirement.

HSA: The Trifecta Tax Advantage

Health Savings Accounts offer three tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. A family can contribute $8,550 in 2026. Often overlooked, HSAs are powerful retirement savings vehicles—save receipts and reimburse yourself years later with accumulated growth.

Catch-up Contributions (Age 50+)

The IRS allows accelerated retirement catch-up contributions for those age 50 and older. Additional $7,500 for 401(k), $1,000 for IRAs, and $1,000 for HSA—perfect for accelerating retirement savings in your peak earning years.

Contribution Timeline Tips

  • Max out employer 401(k) match first: This is historically reliable return on investment
  • Maximize HSA next: Best triple-tax advantage if you have a high-deductible health plan
  • Max out IRA third: More control and lower fees than 401(k) plans
  • Additional 401(k) contributions: Return to this if still under limit and matching is exhausted
  • Taxable brokerage: Once all tax-advantaged space is full, invest in regular taxable accounts

Frequently asked questions

What is the 2026 401(k) contribution limit?
Per the IRS Revenue Procedure for 2026, the elective deferral limit for 401(k), 403(b), and most 457 plans is $23,500. This applies to employee contributions only; employer match is on top.
What is the 2026 catch-up contribution for age 50+?
Workers age 50 and older can contribute an additional $7,500 to their 401(k) on top of the regular elective deferral limit, bringing their personal cap to $31,000.
What is the 2026 IRA contribution limit?
The Traditional and Roth IRA combined limit for 2026 is $7,000. The age-50 catch-up adds $1,000, bringing the total to $8,000.
Can I contribute to both a Traditional IRA and a Roth IRA?
Yes, but the combined contribution cannot exceed the annual limit of $7,000 ($8,000 if age 50+). Roth IRA contributions are also subject to MAGI phase-out ranges set by the IRS.
What is the 2026 HSA contribution limit?
For 2026, HSA limits are $4,300 for self-only HDHP coverage and $8,550 for family HDHP coverage. Account holders age 55+ can add a $1,000 catch-up.
Are 401(k) contributions tax-deductible?
Traditional 401(k) contributions reduce current taxable income — they are pre-tax deferrals. Roth 401(k) contributions are after-tax and do not reduce current income, but qualified withdrawals in retirement are tax-free.
What happens if I contribute over the limit?
Excess contributions are subject to a 6% IRS excise tax per year until withdrawn. The IRS allows correction by withdrawing the excess plus earnings before the tax filing deadline (including extensions) for the year.
Do 401(k) limits include employer match?
No. The $23,500 limit is the employee elective deferral. Employer match is separate and counts toward the combined IRS Section 415(c) annual addition limit, which for 2026 is $69,000 ($76,500 with age-50 catch-up).
Does the SECURE 2.0 Act change 2026 catch-up rules?
SECURE 2.0 introduced a higher catch-up of $11,250 for workers ages 60-63 in 401(k) plans, indexed to inflation. Standard age-50 catch-up rules continue to apply outside that bracket.
Is this data sourced from the IRS?
Yes. Limits on this page mirror the IRS Revenue Procedure inflation adjustments released each fall for the upcoming tax year. CalcFi does not publish projections — only the official figures once announced by the IRS.

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