401(k) and IRA: 2026 contribution limits

There are two common ways to make tax-advantaged retirement savings in the U.S. A 401(k) is an employer-sponsored plan in which contributions are deducted from your paycheck. An IRA (Individual Retirement Arrangement) is a retirement account opened by an individual. On this page, you will find the 2026 limits announced by the IRS, income-based limits, withdrawal rules, and points to consider for those leaving the U.S.

• The employee contribution (elective deferral) limit is $24,500. This limit applies to 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan ($23,500 in 2025).
• Additional contribution for those aged 50 and older (catch-up): $8,000. Thus, people aged 50 and older can contribute a total of $32,500.
• For those aged 60, 61, 62, and 63, the higher additional contribution is $11,250 (under the SECURE 2.0 Act).
• If you participate in more than one plan, your contributions to all plans are combined.
• Your plan may set a lower limit. The plan must allow additional contributions for you to make them.
• Total contribution limit (your contributions, employer matching, and other employer contributions): 100% of your compensation or $72,000, whichever is lower. With additional contributions, this increases to $80,000, or up to $83,250 for those aged 60–63.
• The compensation limit that can be included in the contribution calculation is $360,000.
• SIMPLE plans: $17,000; additional contribution for those aged 50 and older, $4,000; additional contribution for those aged 60–63, $5,250. For certain SIMPLE plans, the limit is $18,100, with an additional contribution of $3,850.
• Excess contributions: if you exceed the annual limit, notify your plan administrator and withdraw the excess by April 15 of the following year. If it is not withdrawn, the same money will be taxed twice.

• Your total annual contribution to all traditional and Roth IRAs: $7,500, or $8,600 for those aged 50 and older (including a $1,100 additional contribution). If your taxable compensation is less than this, the limit is equal to your compensation.
• There has been no age limit for contributions since 2020.
• Spousal IRA: if you file a joint return, a spouse with no compensation may also contribute. The combined contributions of both spouses cannot exceed the taxable compensation reported on the joint return.
• Rollover contributions are not included in this limit.
• Excess contributions: an excess amount generates a 6% tax for each year it remains in the account. You can avoid this tax by withdrawing the excess and its earnings by the tax return deadline, including extensions.

• Deduction for traditional IRA contributions. If you or your spouse participate in a workplace retirement plan, the deduction is reduced and then eliminated within these income ranges:
  • single and covered by a plan: $81,000–$91,000
  • married filing jointly, contributing spouse covered by a plan: $129,000–$149,000
  • contributing spouse not covered by a plan but spouse is covered: $242,000–$252,000
  • married filing separately and covered by a plan: $0–$10,000
  • If neither you nor your spouse participates in a workplace plan, these deduction limits do not apply.
• Contributions to a Roth IRA. Your contribution eligibility is reduced and then eliminated within these income ranges:
  • single and head of household: $153,000–$168,000
  • married filing jointly: $242,000–$252,000
  • married filing separately: $0–$10,000
• Saver's Credit (retirement savings tax credit). Lower- and middle-income taxpayers may receive a tax credit equal to 50%, 20%, or 10% of their contributions to an IRA or employer plan.
  • 2026 income limits: $80,500 for married filing jointly, $60,375 for head of household, and $40,250 for single and married filing separately.
  • Eligible contributions are limited to $2,000 ($4,000 for joint returns). The maximum credit is $1,000 ($2,000 for joint returns).
  • People under age 18, those claimed as dependents on someone else's return, and students are not eligible. You are considered a student if you were a full-time student for any part of five months of the year.

• Early withdrawals: amounts withdrawn before age 59½ are subject to an additional 10% tax on top of income tax unless an exception applies. Examples of exceptions include:
  • the account holder's death
  • permanent and total disability
  • up to $5,000 per child for birth or adoption expenses
  • up to $22,000 for people affected by a federally declared disaster
  • The additional tax and exceptions are reported on Form 5329.
• Required minimum distributions (RMDs): you must withdraw a minimum amount each year from traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer plans beginning at age 73.
  • The first withdrawal must be made by April 1 of the year following the year you turn 73; subsequent withdrawals must be made by December 31 each year.
  • If you continue working under an employer plan and the plan permits it, you may defer the first withdrawal until retirement.
  • There are no required withdrawals from a Roth IRA while the owner is alive.
  • If you fail to withdraw the required amount, a 25% tax applies to the shortfall. The rate is 10% if you correct the error within two years.
• Withdrawals that were not previously taxed are added to your income for that year.

• Pension and annuity payments made to nonresident aliens are generally subject to 30% withholding. A tax treaty may reduce this rate.
• For the effect of the Türkiye–U.S. treaty on pension payments, see 15.5 Türkiye–U.S. income tax treaty.
• For information on how your residency status is determined, see 15.1 Tax residency.
• If you are a U.S. citizen or green card holder, see 15.6 Reporting accounts and assets in Türkiye for foreign account reporting.
• Before closing the account, calculate the early withdrawal tax and withholding. If your situation is complex, consult a tax advisor.

• Contributing to the 401(k)s of two different employers and exceeding the total employee contribution limit.
• Assuming that you can contribute $7,500 separately to a traditional IRA and a Roth IRA. The limit applies to the combined total.
• Contributing to a Roth IRA despite exceeding the income limit.
• Closing the account before age 59½ without accounting for the additional 10% tax.
• Forgetting required withdrawals after age 73.
• Being unaware of the higher additional contribution available between ages 60 and 63.

• I work with an H-1B. Can I participate in a 401(k)? Participation depends on the rules of your employer's plan. The contribution limits are the same for everyone.
• I made the maximum contribution to my 401(k). Can I also open an IRA? Yes. You can contribute to an IRA even if you participate in a workplace plan. However, your traditional IRA deduction or Roth contribution may be limited based on your income.
• I have no compensation. Can I contribute to an IRA? If you file a joint return and your spouse has sufficient compensation, you can contribute to a spousal IRA.
• I am 62. How much additional can I contribute? In 2026, you can make an additional contribution of $11,250 to a 401(k), if the plan permits it. The additional IRA contribution is $1,100.
• I turned 73 but am still working. Do I have to make withdrawals? If your employer plan permits it, you can defer withdrawals from that plan until retirement. Withdrawals from your IRAs are still required.
• Can I claim the Saver's Credit as a student? No. You cannot claim it if you were a full-time student for five months of the year.

• IRS Publication 590-A – IRA contributions (PDF)
• IRS Publication 590-B – IRA withdrawals (PDF)
• IRS Publication 575 – Pension and annuity income (PDF)
• IRS Publication 560 – Retirement plans for small businesses (PDF)
• Form 5329 – early withdrawals and additional taxes (PDF)
• IRS – 2026 limits announcement