By Tony Delane, CFP®, AIF®, Wealth Advisor
Increases for 2026 in the amounts you can contribute into employee retirement plans and IRAs/Roths mean greater tax deferrals and more retirement savings.
To get started on taking advantage of these increases, start by checking your 2025 qualified retirement plan statements to confirm your 2025 contribution. You can then determine how much will be needed to adjust your contribution rate to max out your contribution for 2026.
If you are 50 years old or more and want to make a “catch-up” contribution to a company plan, be sure to reach out to your retirement plan administrator to confirm how you’d like to make this additional contribution.
Here’s the breakdown of 2026 deferral amounts allowed.
Key Takeaways:
- Contribution limits increase in 2026. The IRS raised deferral limits for 401(k), 403(b), and 457(b) plans to $24,500, creating new opportunities for tax deferral and retirement savings growth.
- Enhanced catch-up contributions apply for older savers. Individuals age 50–59 and 64+ can contribute an additional $8,000, while those age 60–63 qualify for a special $11,250 catch-up amount.
- Roth IRA limits also rise. The 2026 contribution limit increases to $7,500, with an additional $1,100 catch-up contribution available for those age 50 and older, subject to income eligibility rules.
- New Roth requirement for higher earners. Workers age 50+ earning more than $150,000 in FICA wages must make catch-up contributions to employer plans on a Roth (after-tax) basis.
- Early planning can help maximize Reviewing your 2025 contributions now can help you adjust deferral rates to fully take advantage of the higher 2026 limits.
401k Contribution Limits for 2026
For employer plans such as 401(k), 457(b) and 403(b), the 2026 Standard Contribution Limit is $24,500.
For savers age 50-59, and 64+, there is an additional catch-up contribution available of $8,000.
For savers age 60-63, there is a special catch-up contribution of $11,250 available. See the chart below for details.
Please note the new rule that requires workers age 50+ who are making catch-up contributions do so on a Roth (after-tax) basis if they make more than $150K in FICA wages. This should be addressed by your Plan Administrator.
Source: Schwab.com and IRS.gov
2026 Roth IRA contribution limits
For IRAs and Roth IRAs, the contribution limit has increased to $7,500 for tax year 2026. For savers age 50+, there is an additional $1,100 catch-up contribution available.
Please note: There are special rules in place that may affect eligibility. For example, a Traditional IRA contribution may not be tax deductible if you earn above a certain amount. Whether or not you are covered by an employer retirement plan further complicates the calculation. For a Roth IRA, eligibility may be reduced or eliminated based on your income. These are challenges that your Halbert Hargrove advisor can assist you with.
Need help with tax and retirement positioning?
Contact your advisory team if you’d like us to estimate your “MAGI” – Modified Adjusted Gross Income – using your previous year’s tax return and 2025 W-2s. That goes as well for any questions you may have about tax-related changes you’re contemplating.
Learn more about Halbert Hargrove’s tax planning and review services.
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser with its principal place of business in Long Beach, California. HH may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of HH, please contact HH or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com.
This blog is provided for general information purposes only. No portion of the content serves as the receipt of, or as a substitute for, personalized investment advice from HH or any other investment professional of your choosing. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy, or any non-investment related or planning services, discussion or content, will be profitable, be suitable for your portfolio or individual situation, or prove successful. Neither HH’s investment adviser registration status, nor any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if HH is engaged, or continues to be engaged, to provide investment advisory services. HH is neither a law firm nor accounting firm, nor does it serve as an attorney, accountant, or insurance agent. No portion of its services, or this content, should be construed as legal or accounting advice. HH does not prepare legal documents or tax returns, nor does it sell insurance products. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if HH is engaged, or continues to be engaged, to provide investment advisory services. All opinions or views reflect the judgment of the author as of the publication date and are subject to change without notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.
