Know Your Numbers
Each year the IRS sets how much you can put into retirement accounts. Here are the 2026 limits for 401(k), SEP-IRA, SIMPLE IRA, Traditional IRA, and Roth IRA accounts in one place, each with a link to its IRS source, followed by answers to common questions.
These limits cover what you contribute from your paycheck, pre-tax and Roth combined. The same employee limit applies to 403(b) plans, governmental 457 plans, and the federal Thrift Savings Plan.
| Contribution type | 2026 limit |
|---|---|
| Your contribution (pre-tax and Roth combined) | $24,500 |
| Catch-up, age 50 and over | +$8,000total $32,500 |
| Catch-up, ages 60 to 63 | +$11,250total $35,750 |
| Total from you and your employer (not counting catch-ups) | $72,000 |
| Most compensation that can count toward contributions | $360,000 |
Own the business with no employees? A Solo 401(k) uses these same limits. You can contribute as the employee and as the employer, up to the $72,000 combined total.
Catch-up contributions are available only if your plan allows them. The ages 60 to 63 catch-up replaces the regular catch-up in the years you turn 60, 61, 62, or 63. Sources: IRS News Release IR-2025-111 and IRS cost-of-living adjustment table.
Only the business contributes to a SEP-IRA, and it decides each year whether to contribute and how much. Every eligible employee receives the same percentage of pay.
| Contribution type | 2026 limit |
|---|---|
| Most the business can contribute per person | 25% of pay, up to $72,000 |
| Most compensation that can count toward contributions | $360,000 |
| Pay at which an eligible employee must be included | $800 |
| Catch-up contributions | Not available |
Self-employed? Your 25% is figured on net earnings from self-employment after certain deductions, so the most you can contribute for yourself works out to a lower percentage. IRS Publication 560 walks through the calculation.
Other eligibility rules, such as age and years of service, also apply. Sources: IRS SEP contribution limits and IRS cost-of-living adjustment table.
Employees contribute from their paychecks, and the business adds either a match or a set contribution for everyone eligible.
| Contribution type | 2026 limit |
|---|---|
| Employee contribution | $17,000 |
| Catch-up, age 50 and over | +$4,000total $21,000 |
| Catch-up, ages 60 to 63 | +$5,250total $22,250 |
Some SIMPLE plans allow more. Plans that qualify for higher limits allow $18,100 in employee contributions and a $3,850 catch-up at age 50 and over. This generally applies to employers with 25 or fewer employees, and to employers with 26 to 100 employees that make a larger contribution for their team.
Source: IRS News Release IR-2025-111.
Anyone with earned income can contribute to a Traditional IRA, at any age. Whether your contribution is tax-deductible depends on your income and on whether you or your spouse is covered by a retirement plan at work.
| Contribution type | 2026 limit |
|---|---|
| Annual contribution | $7,500 |
| Catch-up, age 50 and over | +$1,100total $8,600 |
One limit covers all your IRAs. If you put $3,000 into a Roth IRA, you can put up to $4,500 into a Traditional IRA for 2026.
| If you are | Modified AGI range |
|---|---|
| Single or head of household, covered by a workplace plan | $81,000 to $91,000 |
| Married filing jointly, and you are covered by a workplace plan | $129,000 to $149,000 |
| Married filing jointly, and only your spouse is covered | $242,000 to $252,000 |
| Married filing separately, covered by a workplace plan | $0 to $10,000 |
If neither you nor your spouse is covered by a retirement plan at work, your contribution is fully deductible at any income. Source: IRS News Release IR-2025-111.
You contribute money you have already paid tax on, and qualified withdrawals may be tax-free. How much you can contribute depends on your income.
| Contribution type | 2026 limit |
|---|---|
| Annual contribution | $7,500 |
| Catch-up, age 50 and over | +$1,100total $8,600 |
| If you file as | Modified AGI range |
|---|---|
| Single or head of household | $153,000 to $168,000 |
| Married filing jointly | $242,000 to $252,000 |
| Married filing separately | $0 to $10,000 |
Below the range, you can contribute the full amount. Within it, the amount you can contribute shrinks. Above it, you cannot contribute directly to a Roth IRA for 2026.
The Roth IRA and Traditional IRA share one annual limit. Source: IRS News Release IR-2025-111.
Yes, but the $7,500 limit ($8,600 at age 50 and over) is shared between them. You can split it any way you like, as long as the total stays within the limit.
Yes. Contributions to a workplace plan do not count against your IRA limit. Your Roth IRA eligibility depends only on your income. For a Traditional IRA, being covered by a workplace plan can limit how much you can deduct, based on the income ranges above.
Yes, as long as your child has earned income from real work they actually do. The contribution cannot be more than what they earned for the year, up to the $7,500 limit, and there is no minimum age. Keep good records of the work and the pay.
Often, yes. Roth contributions inside a workplace 401(k) have no income limit, and some people make a nondeductible Traditional IRA contribution and later convert it to a Roth IRA. Conversions have tax rules that can catch people off guard, so review them with your advisor and tax professional before you act.
For a Traditional or Roth IRA, the deadline is generally your tax filing deadline, April 15, 2027. SEP-IRA contributions can be made up to the business's tax filing deadline, including extensions. Employee contributions to a 401(k) or SIMPLE IRA come out of your paychecks during 2026.
If you turn 60, 61, 62, or 63 during 2026, a 401(k), 403(b), governmental 457 plan, or SIMPLE IRA that allows it lets you use a larger catch-up instead of the regular one: $11,250 in a 401(k) and $5,250 in a SIMPLE IRA. The year you turn 64, the regular age 50 catch-up applies again.
The limits tell you the most you can save. The better question is how much to save, in which accounts, and in what order. That depends on your income, your taxes, and whether you own a business, and it is exactly what a first conversation is for.
Figures come from IRS announcements for tax year 2026 and are reviewed each year when the IRS releases new limits. This page is general education, not tax or legal advice. Retirement account rules include exceptions that depend on your situation; please consult a qualified tax professional about your own circumstances.
Champion Wealth Management and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59½ may result in a 10% IRS penalty tax in addition to current income tax.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
Whether you are saving on your own or offering a plan to your team, we will find the accounts that fit your goals.
Schedule a Conversation (662) 253-8406