2026 Contribution Limits

Changes from 2025

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 guaranteed 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