401(k) and IRA contribution limits for 2026

For 2026 you can put $24,500 into a 401(k) and $7,500 into an IRA. These are separate limits, so having one does not reduce the other. The figures come from IRS Notice 2025-67.

The 2026 numbers

The order that usually makes sense

These accounts are not competing. They do different jobs, and there is a conventional sequence:

1. 401(k) up to the full employer match. A match is an immediate return on your contribution that nothing else matches. Leaving it unclaimed is the most expensive common mistake in retirement saving.
2. IRA next, because you choose the provider and the investments rather than being limited to your plan menu, and fees are often lower.
3. Back to the 401(k) for anything beyond that, up to $24,500.

Income limits apply to the IRA, not the 401(k)

Anyone with earned income can contribute to a 401(k) through their employer regardless of salary. IRAs have income phase-outs, and they differ by IRA type.

Above the top of a range, that specific benefit is gone. Note what the traditional row actually limits: the deduction, not the contribution.

What the employer match is actually worth

A common structure is a 50% match on the first 6% of salary. On a $70,000 salary, contributing 6% means $4,200 of your own money and $2,100 from the employer. That is a 50% return, immediately, before anything is invested.

Nothing else in personal finance offers a guaranteed 50% on day one. This is why the match sits first in the ordering, ahead of paying down most debt and ahead of any IRA decision.

The catch-up rules, which are unusually fiddly for 2026

• Under 50: $24,500 in a 401(k), $7,500 in an IRA.
• 50 to 59: add $8,000 to the 401(k) and $1,100 to the IRA.
• 60 to 63: the 401(k) catch-up is $11,250 instead of $8,000, not in addition to it.
• 64 and over: back to the standard $8,000 catch-up.

The 60 to 63 window is a genuinely unusual provision, and it is easy to misread as stacking. It replaces the standard catch-up for those four years.

Two limits people miss

The overall plan limit. Your $24,500 is the elective deferral cap on your own contributions. There is a separate, higher overall cap covering your contributions plus employer contributions plus any after-tax amounts. Most people never approach it, but high earners with generous matches can.

The limit is per person, not per plan. If you change jobs mid-year and contribute to two 401(k) plans, the $24,500 applies across both combined. Payroll systems at a new employer do not know what you contributed at the old one, which makes this a common accidental over-contribution.

What the phase-out ranges actually do

Phase-outs taper rather than cut off abruptly. Inside the range the benefit reduces proportionally; above the top it is gone. Note precisely what each range limits:

• Roth IRA: the range limits how much you can contribute.
• Traditional IRA: the range limits how much of the contribution is deductible, and only applies if you or a spouse are covered by a workplace plan. You can still contribute without the deduction.

Which of those matters to you depends on the Roth versus traditional decision. See how to think about that.

Frequently asked questions

Can I contribute to both in the same year?

Yes. The limits are separate, so a maximum year in 2026 is $24,500 plus $7,500.

Does my employer match count toward the $24,500?

No. The $24,500 is your own elective deferral. Employer contributions fall under a separate, higher overall cap.

What if I contribute too much?

Excess contributions can be corrected, but there are deadlines and potential penalties. Contact the plan administrator or IRA provider as soon as you notice.

Do these limits change every year?

They are indexed for inflation and usually announced in the autumn for the following year, the same timing as the tax bracket adjustments.

When is the deadline to contribute?

401(k) contributions must come from payroll during the calendar year. IRA contributions for a tax year can generally be made until the tax filing deadline the following spring, which gives you extra time.

Can I contribute to an IRA if I have a 401(k)?

Yes. Having a workplace plan does not stop IRA contributions; it only affects whether a traditional IRA contribution is deductible above certain income levels.

What if I change jobs mid-year?

The elective deferral limit applies to you across all plans in the year, not per employer. Track your total, because payroll will not.

Does the employer match reduce how much I can contribute?

No. The match sits outside your $24,500 elective deferral limit, under a separate overall cap.