The IRS announced higher retirement contribution limits for 2026. According to the official IRS announcement, the 401(k) employee contribution limit rose to $24,500, up from $23,500 in 2025, while the IRA contribution limit increased to $7,500. Workers aged 50 and older can contribute up to $32,500 total using the standard catch-up provision, and thanks to a SECURE 2.0 “super catch-up” provision, those turning 60 through 63 in 2026 can contribute as much as $35,750.

Why the catch-up tiers matter so much

The gap between the standard limit and the age-60-63 super catch-up is substantial — over $11,000 in additional annual contribution room. For someone in their early 60s catching up on retirement savings, that expanded limit represents one of the largest tax-advantaged savings opportunities available anywhere in the tax code, but only for a narrow four-year age window.

What maxing out actually adds up to

A higher annual limit only matters if it’s actually used, and the long-term impact compounds significantly. Contributing the full $24,500 annually for just five years, growing at a typical long-term market return, adds up to meaningfully more than simply multiplying the contribution by five, since each year’s contribution keeps compounding through the following years.

Model your own contribution strategy

Our retirement calculator lets you project your own 401(k) balance using the actual 2026 contribution limits, your employer match, and your expected timeline to retirement, rather than relying on rough back-of-envelope math.