By Dr. Jim Dahle, WCI FounderContribution limits for 401(k)s, 403(b)s, 457(b)s, IRAs, Roth IRAs, HSAs, FSAs, SIMPLE IRAs, and SEP-IRAs are all indexed to inflation. While the retirement contribution limits do not go up every year, and while every account does not use the same formula for when there will be an increase, you will generally see an increased contribution every year or two.
Although inflation exploded in 2022, meaning the 2023 contribution limits increased in a relatively significant way, it's mostly been tamed in the past three years, and as a result, the increases in those limits for 2026 are back to normal. If you know the latest inflation numbers, it is possible to calculate the increase even before the IRS announces it in October or November (in 2024, the IRS officially released its figures on November 1).
Note that 2022's Secure Act 2.0 changed catch-up contributions in significant ways. The 401(k)/403(b) catch-up for those 50 years old or older has always been indexed to inflation. But the law stated that, starting in 2024, if you have Social Security wages of $145,000+ (indexed to inflation), those catch-up contributions would now have to come on the Roth side. In 2026, the Social Security wage threshold will rise to $150,000+. That means tax-deferred catch-up contributions would no longer be allowed for these high earners.
Eventually, the IRS announced that it was pushing back that provision until 2026, so unless something changes in the next few months, catch-up contributions for most white coat investors will have to come via Roth [in September 2025, this provision was moved back to 2027].
Also remember that beginning in 2025, catch-up contributions were increased even more for those who are 60-63 years old (it'll be the larger of $10,000 or 50% more than the regular catch-up contributions).
All that said, here are the limits for 2026 retirement plan contributions.
2026 401(k) and 403(b) Employee Contribution Limit
The total employee contribution limit to all 401(k) and 403(b) plans for those under 50 will go up from $23,500 in 2025 to $24,500 in 2026. The catch-up contribution limit will rise from $7,500 in 2025 to $8,000 in 2026, so if you're 50+, your 401(k) employee contribution limit will be $32,500 in 2026.
But if you are aged 60-63 by the end of 2026, your catch-up contribution will be $11,500, meaning you can contribute a total of $36,000. [FOUNDER'S NOTE: Still researching this, it may be as high as $12,000, 150% of $8,000.]
2026 401(k)/403(b)/401(a) Total Contribution Limit
The total of all employee and employer contributions per employer will increase from $70,000 in 2025 to $72,000 in 2026 for those under 50. With the catch-up increasing to $8,000, the total contribution for those 50+ will be $80,000. If you're 60-63, that contribution increases to $83,500.
Note that the 401(a) limit is separate from the 403(b) limit. So, you could theoretically get $72,000 into each of them.
2026 457(b) Contribution Limit
457(b) contribution limits will increase from $23,500 in 2025 to $24,500 in 2026. 457(b)s have unique catch-up contribution rules, so consult with your plan administrator if you are interested in putting more in your 457(b).
2026 Traditional and Roth IRA Contribution Limits
IRA contribution limits will increase from $7,000 in 2025 to $7,500 in 2026. The catch-up contribution limit will rise from $1,000 in 2025 to $1,100 in 2026.
2026 SEP-IRA Contribution Limits
SEP-IRA contribution limits will increase from $70,000 per year for 2025 to $72,000 in 2026.
2026 SIMPLE IRA and SIMPLE 401(k) Contribution Limits
The SIMPLE IRA and SIMPLE 401(k) contribution limits will increase from $16,500 in 2025 to $17,000 in 2026.
2026 Health Savings Account (HSA) Contribution Limits
For single people, the HSA contribution limit will increase from $4,300 in 2025 to $4,400 in 2026. Family coverage will increase from $8,550 to $8,750. The $1,000 catch-up contribution for those 55+ remains the same.
2026 Flexible Savings Account (FSA) Contribution Limits
Healthcare FSA contribution limits will increase from $3,300 in 2025 to $3,400 in 2026. Note that there are other types of FSAs (such as dependent care FSAs) with different limits.
Other Interesting Increases
The 401(a) compensation limit (the amount of earned income that can be used to calculate retirement account contributions) will increase from $350,000 in 2025 to $360,000 in 2026. This is always 5X the maximum 401(k) plan total contribution limit.
The deductibility phaseout for IRA contributions for those with a retirement plan at work increases from $79,000-$89,000 in 2025 for singles to $81,000-$91,000 in 2026, and it'll move from $126,000-$146,000 in 2025 for those Married Filing Jointly to $129,000-$149,000.
The Roth IRA Direct Contribution Limit phaseout will increase from $150,000-$165,000 in 2025 for singles to $153,000-$168,000 and from $236,000-$246,000 in 2025 for those Married Filing Jointly to $242,000-$252,000. If your MAGI is above that, you'll need to contribute indirectly via the Backdoor Roth IRA process.
While Social Security benefits increased by 8.7% for 2023, the bumps for 2024 and 2025 were much more modest at 3.2% and 2.57%, respectively. The number for 2026 is not yet known.
The definition of a highly compensated employee will remain the same in 2026 at $160,000.
While it feels like all of these are increases, they are really just keeping up with inflation. On a real (after-inflation) basis, they're basically the same as this year.
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What do you think? Are you surprised by any of these? Are you glad they're indexed to inflation?
So you do have a crystal ball and have been hiding it from us 😁
Just projecting. Occasionally we do have to do a correction on a data point or two in this post in a couple of months. But most of the data needed to make the projections is now out there.
It’s a bit strange for me to read this type of article, having dropped to two days a week in the summer of 2022.
I now have no 457 plan, no 401a plan, no HSA, and my old side gig SEP-IRA is the only place currently likely to be funded for 2023. I did max all these out by August of 2022, to the degree I could and received the largest federal tax refund of our adult lives this past April.
I make less than half of my prior income with my two days a week of telehealth and quarterly locums side gig. I also lost my free health insurance, and cheap dental and vision coverage.
It’s a new game. My current plan is to deduct as much of the health insurance premiums I can, and max out the SEP-IRA as I never switched to a solo 401 plan. I was just used to the SEP and couldn’t use the extra contribution space anyway.
Another columnist here wrote that my self employed health insurance deduction “would be prorated” even though my half time W2 employer offers no health insurance…which didn’t seem fair to me.
I think I might be able to get a self employed HSA to max out with a HDHCP, but it’s complicated.
It seems my defense (tax reductions) may be limited to: maxing out the SEP-IRA, deducting the health insurance premiums to the degree I can, and getting a self employed HSA. Maybe I will also qualify for a Roth contribution if our MAGI is less than $218K.
It’s been a rude awakening to pay $13,000 a year for crappy health coverage and dip into my HSA for about $5000 worth of copays and “we don’t pay anything on that” limited coverage. That’s $18,000 for year one and none of us were sick. We are looking for a “cash” dentist as dental insurance costs about the same as the services we need (basic cleanings and occasional filling repairs).
The days of maxing out a 401a with a match, a 457 with a small match, the side gig SEP, and an employer HSA (about $90K a year for all) are gone. They were great while I had them…as was our free health plan and the dental/vision.
I am entering this arena- as I quit my employed position to travel the world with my kids and take a sabbatical. (Thanks to WCI for teaching me how to win at FIRE). Will only work part time moving forward. The bright side this year, was international health insurance for a family of 4 with 1500 deductable was < 7k. Includes 6 m of USA coverage in event of emergency. I am dreading returning and trying to figure out how to pay for USA coverage next year. Although my health coverage was never "free'- still paid thousands a year when employed for a HDHSA.
I spoke with the Fidelity executive services 401k team yesterday and they insisted the $73,500 (for 50+) is across all employers cumulatively. I said my understanding is that the $30k (pre-tax and Roth) tracks the individual cumulatively across all employers, but the $73.5k limit is per each individual employer. They said they disagreed (per irs rules).
My question is: if an individual caps out 73.5k from employer A, say in July (with 30k pretax/makeup, after-tax, and company match) and leaves company A to start with company B on October 1st…… can the individual make after-tax contributions to company B in order to qualify for the company match from company B, October through December?
If company B allows them to. Most company Bs don’t allow you to use the 401(k) for a year though.
The Fidelity rep you spoke to is wrong as noted in this post:
https://www.whitecoatinvestor.com/multiple-401k-rules/
If you feel like arguing, ask them to cite the IRS rule. They won’t find one, but there’s plenty of confusion out there on this point because it just doesn’t apply to very many people.
Do you all think there is a non-zero chance of a “bail in” in the US in the next 15-20 years?
Wouldn’t you rather have current dollars than future dollars?
Just curious.
Truly I’d rather have past dollars.
Just wanted to understand the age 50 rule. I will turn 50 in May 2024. So am I eligible for the age 50 contribution limits for the various plans throughout all of 2024?
Thanks!
Yes
For those of us that budget our Backdoor Roth contributions in the year prior, how early can we know the next year contribution limits? For example, we’ve already budgeted $6500 for me and my spouse out of this years income to go into the Backdoor Roth in January 2024. But now we will need an extra $500 each? Is there a better way to plan in advance?
The limit has increased $500 about every 4 years going back to 2008 (see chart in article below):
https://www.investopedia.com/ira-contribution-limits-historical-timeline-5221129
The back-to-back increases we have seen in the last two years are due to uncommonly high inflation over that time period.
For the 401(a) plan, can employees contribute any amount that adds up to a total (employee + employer) of $68,000? For example, for a salary of $200,000, a mandatory contribution of 5% and an employer match of 10%, the total baseline contribution would be $30,000. Does that mean the employee could contribute an additional $38,000 into that plan annually for a total of $68,000?
HSA contribution (family) increase from 7,750 to 8,300 is an increase of 550, not 650 as noted in the table. Also there’s a 1,000 catch-up contribution (for those aged 55 or greater) on HSAs (no change from 2023) not noted in the article or table. Thanks for the great article!
Thanks for the corrections/clarifications.
Can you explain the new , for 2024, “additional employer contribution” option for Simple IRA accounts? I would like to see an example. I think the employer can still make the 3% Employer matching contribution PLUS some additional amount from 1% to 10%.
ΔSection 116: Allow Employers to Put More into SIMPLE IRAs
Raises the possible match in a SIMPLE IRA from 2% of compensation (or 3% of compensation if a match) to 10% of compensation or $5,000 indexed to inflation, whichever is less. Starts in 2024.
https://www.whitecoatinvestor.com/secure-act-2-0/
I read it as an ADDITIONAL contribution to the 3% Employer Match. In other words the employer does the 3% employer match just like he did for 2023, but can put in an additional contribution for 1% up to 10% with $5,000 limit on this “additional ” amount. What do you think?
I don’t have any additional secret information on how this will work. My take was that it wasn’t an additional contribution, just a larger one than it used to be but I could be wrong.
Did you forget the catch up contributions for HSAs? I think it is an additional $1000 for those 55 and over.
Yes it is. Good idea to add it to the article. The catch-up amount has not ever changed.
I have a question regarding 457B and the 66,000 limit:
My mandatory employer/employee 403b: ~48K
My supplemental SRP 403b : ~22.5K (will stop when hit 66 limit)
457B (first year with access to) – limit is 22.5k – should I even contribute
Does the 457B factor into the 66K limit?
No. Totally separate limit.
I believe the IRA catch-up contribution limit should be $8000 ($7000 + $1000 catch-up).
That’s correct.
It is listed correctly in the table but incorrectly in the article
Good eye. Fixed.
Hi Dr. Dahle/White Coat Investor,
I am wondering if I can max out both my SEP-IRA and my Roth IRA for my contribution year in 2023, for example, if I already have contributed my maximum of $66,000 in 2023 to April 15, 2024, but roll over $6500 into my Roth-IRA via backdoor (and after pro-rata rule deductions), now I have $60,500 in my SEP-IRA account.
Can I contribute another $6500 into my SEP-IRA to maximize again at $66,000 or would I be penalized?
Yes. Two totally separate contribution limits. No limits on rollovers or conversions either.
In your case, you’ve contributed $66,000 to your SEP-IRA. So you can’t contribute more there. But you can contribute $6,500 to an IRA and then convert that. You didn’t really do a Backdoor Roth IRA. You did a SEP-IRA contribution (that will give you a $66,000 deduction) and a $6,500 Roth conversion (that will cost you $2-3K in taxes). A Backdoor Roth IRA does neither of those things. No deduction. No cost to the conversion. More info here:
https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/
I’m thrilled to see the increased contribution limits for retirement savings plans in 2024. As someone focused on maximizing my investments for a comfortable retirement, having the option to contribute $22,500 to a 401(k) this year provides welcome flexibility. Even small incremental rises like the $100 increase to $6,500 for IRAs make a difference over time thanks to compound growth. With prudent planning guided by these limits, my aim is to sock away at least $25,000 this year across my employer-sponsored plan and IRA. Every little bit gets me closer to my long-term goals.
I’s $23,000 for 2024. And IRAs have never gone up by just $100.
Hi Jim,
My wife works at an academic institution and I’m trying to wrap my head around the various options available to us. There’s a 401(a) that the institution contributes 12% but 6% of it is made on behalf of the employee and 6% is made on behalf of the employer. No additional contributions are allowed into that account. Then there is a 403b and a 457b that are entirely employee contributions. Based on the above, am I correct in thinking we could do the following to max out our options:
23k into the 457b entirely employee contribution
69k into the 403b entirely employee contribution
~23k into the 401a half employee and half employer (though it’s made entirely by the institution, and we don’t have control over the amount)
I guess I’m trying to figure out if the 401a or 457b employee contributions reduce the $69k limit on the 403b?
Thanks in advance for your guidance!
The 457b does not. That much is very clear.
I looked up the 401a question a little while ago and I believe I was surprised to find that it does not share a limit with the 403b. I previously thought it did, but apparently it does not. Let me try to double check that….
https://www.whitecoatinvestor.com/multiple-401k-rules/
https://www.plansponsor.com/blines-ask-the-experts-415-limit-when-sponsoring-both-a-401a-and-403b/
Yup, separate 415(c) ($69K in 2024) limit for a 401(a) and a 403(b).
how she is able to do 69k into 403b? isn’t that limit 23k if you are below 50 for 2024? OR does she have access to maga back door roth??
$23K is the employee “deferral” contribution. $69K is the total contribution between employee “deferrals” (can be Roth), employee after-tax (MBDR), and employer contributions. Whether a given plan allows you to get $69K in it is more up to the plan than the IRS.
First of all, thanks for all you do. I am trying to get my financial life in order. My employer offers a 401k with a match, 403b and a 457b. I read your article above stating that 401k/403b contribution limits are $69K for those <50 and that 457b contribution limits are $23K in 2024. I want to clarify and be sure, that for all three accounts under just one employer, that these contributions can be maxed out to $92K? I am getting mixed messaging from what I read and others are telling me, so I very much appreciate your help.
One employer so the 401(k) and 403(b) should have a combined $69K limit but the $457(b) has a separate $23K limit so yea, $92K. But whether the plans actually allow you to put as much in as the IRS allows is a different question.
I ran into this IRS website (https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan) , where it states that: “The amount you can defer (including pre-tax and Roth contributions) to all your plans (not including 457(b) plans) is $23,000 in 2024 … Although a plan’s terms may place lower limits on contributions, the total amount allowed under the tax law doesn’t depend on how many plans you belong to or who sponsors those plans.”
Are they talking about the same thing? It seems that the IRS is saying that the limit is the individual limit across all retirement plans, is that correct? Or am I missing something?
Thanks!
This post should answer your questions:
https://www.whitecoatinvestor.com/multiple-401k-rules/
I am a federal employee, over the age of 50 and contribute to the Thrift Savings Plan program. In 2024 it’s limited to $23,000 plus a catchup of $7,500. Am I also allowed to contribute $7,500 to a Roth IRA through the NFCU?
No, you’re allowed to contribute $8,000 ($7,000 contribution plus $1,000 catch-up.) 401(k) catch-up is $7,500. IRA catch-up is $1,000. HSA catch-up is $1,000 (but starts at 55).
Also note on the HSA Family, you can contribute up to $8,550 (combined) in 2025 and if you are both 55 years and older as of 12/31/2025, you both can contribute up to the $1,000 Catch-Up contribution, as long as they both have their individual HSA accounts.
Any prediction about the QCD limit in 2025? It’s also supposed to be adjusted for inflation.
Maybe we should start including that. It’s $105K in 2024 so I guess something around $108K.
It’s difficult to find any information on the 2025 QCD. I did find a reference that said that QCD increases must come in $5k increments. I found nothing on the IRS web site.
Interesting. Hopefully an announcement is made by year end.
I am below 50 and have both 403(b) and 401(a). 401(a) is funded fully from my salary as “employer contribution” at 10%. No employer match for that. 403(b) has a match.
Is 401(a) limit separate form 403(b) limit? When I called retirement administrator, they said employer can put upto 3X of my salary into that!
Yes, I believe it is although I have one reader who tells me their accountant is telling them something else (combined limits) but hasn’t been able to cite chapter and verse showing I’m wrong.
I have 401a and 403b. 401a is separate limit for me
That’s what I would expect.
What is your 401a limit if I may ask?
I am unclear about the specific steps and logistics of catch up contribution under the SecureAct2.0 provisions. I have a 401K through my employer which is managed by Voya. I have a separate Roth IRA through my brokerage company ETrade. Even though it will come into effect in 2026, how will it work? Assume that the contribution and catch-up limits stay at $23,500 and $7,500 respectively. Will Secure Act 2.0 require me to open a new IRA account at Voya for pre-tax deduction?
You need Voya to create a 401K Roth for a POST (not pre) tax deduction. Your private Roth IRA at ETrade is separate.
Hallo!
You wrote, “But originally the law stated that, starting in 2024, if you have a Modified Adjusted Gross Income of $145,000+”
For Secure Act 2.0, the 50+ catch-up Roth contribution requirement is based on Social Security wages, not “Modified Adjusted Gross Income”. For.most people, this means that if your gross is $145K+, you have to contribute your catch-up dollars to a Roth account.
https://www.irs.gov/newsroom/irs-announces-administrative-transition-period-for-new-roth-catch-up-requirement-catch-up-contributions-still-permitted-after-2023
“Under that provision, starting in 2024, the new Roth catch-up contribution rule applies to an employee who participates in a 401(k), 403(b) or governmental 457(b) plan and whose prior-year Social Security wages exceeded $145,000.”
Thank you for all your good work!
That’s news to me, thanks for sharing/clarifying/correcting/updating. I didn’t see that IRS notice when it first came out. Not sure why I thought it was MAGI, whether that was the initially messaging or a bad assumption I made. We’ll get the post fixed..
I have not been able to find IRS rules for 401(a) limits associated with my circumstance.
I was reading your 401(a) page (https://www.whitecoatinvestor.com/401-a/) and correspondence. Given your announcement above that the “total of all employee and employer contributions per employer will increase from $69,000 in 2024 to $70,000 in 2025 for those under 50,” am I correct in thinking that if I have separate employers the limits are not combined?
I have a 401(a) as an University employee.
I have a separate 401(k) through my clinical partnership.
Since these are unrelated employers am I correct in thinking that in 2025 I can contribute $70,000 to my partnership 401(k) and I can also have additional contributions to my University 401(a) (regardless of the type of 401(a))?
Thank you so much for all of the education you do.
That’s correct. Separate employers, separate limits except the $23K (2024) employee “deferral” (can also be Roth) limit. That one is shared across all unrelated employers. More info here:
https://www.whitecoatinvestor.com/multiple-401k-rules/
Yes, you can max out both of those accounts.
I became eligible to defer compensation in 2017 to a 457b Plan, but did not take advantage until 2020. 2025 is the first of three years I will be able to use the special catch-up contribution provision of this 457b plan. The catch-up amount can be the lesser of: 1. Twice the annual Deferral Limit for the current year; or 2. The annual Deferral Limit for the current year plus the amount for which the Participant was eligible to contribute in previous years but did not defer under the plan. So, my question is, if I decide to use this catch-up provision, will #2 drive the limit calculation by looking back to 2017, 2018 or 2019 Deferral Limits and adding one of those to the 2025 Deferral Limit since I was eligible in those years but didn’t contribute? If so, which year?
I guess the most recent would give you the largest contribution.