401(k) and IRA Contribution Limits 2026, With a 2027 Watch
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Quick Answer
For 2026 you can defer $24,500 into a 401(k), $32,500 with the $8,000 catch-up at 50 or over and $35,750 at 60 to 63; all contributions other than catch-up into one participant's accounts in an employer's defined contribution plans are capped at $72,000, and an IRA takes $7,500 (IRS Notice 2025-67, as of October 23, 2026). The $72,000 counts your deferrals, the employer's money and any after-tax money together, and the catch-up sits on top of it, so the ceiling is $80,000 at 50 or over and $83,250 at 60 to 63 (our arithmetic). A self-employed owner does not get the 25% employer rate: the employer share is 20% of net earnings after half of self-employment tax, so a solo 401(k) reaches $72,000 only at about $237,500 of those earnings (our arithmetic from Publication 560). SIMPLE IRAs allow $17,000 ($18,100 for certain employers) and SEPs 25% of pay up to $72,000. The IRS had not published the 2027 notice on October 23, 2026; the last three came on November 1, 2023, November 1, 2024 and November 13, 2025, and the 2027 column below stays "pending" until it does.
Key Takeaways
- The 401(k) deferral limit is $24,500 for 2026, up from $23,500. Notice 2025-67 says the section 402(g) limit is “increased from $23,500 to $24,500”. With the $8,000 catch-up (age 50 or over) the most you can defer is $32,500; at 60, 61, 62 or 63 the catch-up stays $11,250, so the most is $35,750 (our arithmetic).
- The $72,000 ceiling is for all contributions to one participant, not on top of the deferral. Publication 560 says a defined contribution plan’s annual additions “can’t exceed the lesser of” 100% of compensation and “$70,000 for 2025 ($72,000 for 2026)”, and that catch-up contributions “aren’t subject to the above limit”. So $72,000 plus $8,000 is $80,000, and plus $11,250 is $83,250 (our arithmetic).
- For a self-employed owner the employer share is 20%, not 25%. Publication 560’s rate table turns a 25% plan rate into 0.200000 of net earnings after the self-employment tax deduction. With $24,500 deferred, the $72,000 cap binds from about $237,500 of those earnings; at $100,000 the total is $44,500 and at $200,000 it is $64,500 (our arithmetic).
- SEP and SIMPLE are smaller on purpose. A SEP takes the lesser of 25% of pay and $72,000 (20% of net earnings for the owner), so $72,000 takes $288,000 of employee pay or $360,000 of owner earnings. A SIMPLE IRA takes $17,000 ($18,100 for certain employers), plus $4,000 of catch-up ($5,250 at 60 to 63). The window to set one up for 2026 closed on October 1, 2026.
- Fifteen of the 21 limits in the tables below rose from 2025 to 2026, and six did not: the age 60 to 63 catch-up ($11,250), the highly compensated employee threshold ($160,000), the starter 401(k) amount ($6,000), the QLAC premium limit ($210,000) and two SIMPLE catch-ups ($5,250 and $3,850). The Roth catch-up wage threshold went from $145,000 to $150,000.
- The 2027 figures are not published. The three previous notices were released on November 1, 2023, November 1, 2024 and November 13, 2025, and each limit moves in fixed rounding steps ($500 for the deferral limit, $1,000 for the $72,000 limit). This page keeps a dated “pending” column and does not guess.
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401(k), IRA, SEP and SIMPLE contribution limits for 2026: IRS amounts, history, rounding rules and worked room examples
87 rows: the 2026 and 2025 amounts from Notice 2025-67, deferral limits back to 2023 and release dates from IRS news releases, the self-employed percentage rules from Publication 560, the Code rounding steps, and twelve worked figures (our arithmetic).
The 2026 limits, from the notice
Every 2026 and 2025 dollar figure in the first three tables is read from Notice 2025-67 (“2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living”), which the IRS announced on November 13, 2025 (IR-2025-111). Totals marked “our arithmetic” add two of its figures. “Pending” in the last column means the IRS had not published the 2027 notice on October 23, 2026.
Employee deferrals and catch-up
| Limit | Code section | 2025 | 2026 | 2027 |
|---|---|---|---|---|
| Elective deferrals: 401(k), 403(b), governmental 457(b), federal Thrift Savings Plan | 402(g)(1) | $23,500 | $24,500 | pending |
| Catch-up, age 50 or over (plans other than SIMPLE) | 414(v)(2)(B)(i) | $7,500 | $8,000 | pending |
| Catch-up, attains age 60, 61, 62 or 63 in the year | 414(v)(2)(E)(i) | $11,250 | $11,250 | pending |
| Most you can defer at 50 or over (our arithmetic) | 402(g) plus 414(v) | $31,000 | $32,500 | pending |
| Most you can defer at 60 to 63 (our arithmetic) | 402(g) plus 414(v) | $34,750 | $35,750 | pending |
| Roth catch-up wage threshold, prior-year W-2 wages | 414(v)(7)(A) | $145,000 | $150,000 | pending |
Source: IRS Notice 2025-67; IRS news releases IR-2024-285 and IR-2025-111 for the $31,000 and $32,500 totals. The Roth catch-up rule has its own page: Roth catch-up contributions 2026.
Plan-level and pay caps
| Limit | Code section | 2025 | 2026 | 2027 |
|---|---|---|---|---|
| Defined contribution annual additions (employee plus employer plus after-tax) | 415(c)(1)(A) | $70,000 | $72,000 | pending |
| Same, plus the age 50 catch-up (our arithmetic) | 415(c) plus 414(v) | $77,500 | $80,000 | pending |
| Same, plus the age 60 to 63 catch-up (our arithmetic) | 415(c) plus 414(v) | $81,250 | $83,250 | pending |
| Defined benefit plan, annual benefit | 415(b)(1)(A) | $280,000 | $290,000 | pending |
| Compensation that can be counted | 401(a)(17) | $350,000 | $360,000 | pending |
| Highly compensated employee threshold | 414(q)(1)(B) | $160,000 | $160,000 | pending |
| Key employee threshold (top-heavy plans) | 416(i)(1)(A)(i) | $230,000 | $235,000 | pending |
| Qualifying longevity annuity contract premium limit | 1.401(a)(9)-6(q)(2)(ii) | $210,000 | $210,000 | pending |
Source: IRS Notice 2025-67. The 2025 totals with catch-up are our arithmetic from the 2025 figures in the same notice. The QLAC limit has its own page: QLAC limit 2026.
IRAs, SIMPLE, SEP and starter plans
| Limit | Code section | 2025 | 2026 | 2027 |
|---|---|---|---|---|
| IRA contribution, traditional and Roth combined | 219(b)(5)(A) | $7,000 | $7,500 | pending |
| IRA catch-up, age 50 or over | 219(b)(5)(B)(ii) | $1,000 | $1,100 | pending |
| SIMPLE IRA or SIMPLE 401(k) salary reduction | 408(p)(2)(E)(i)(III) | $16,500 | $17,000 | pending |
| SIMPLE higher limit (certain employers) | 408(p)(2)(E)(i)(I) or (II) | $17,600 | $18,100 | pending |
| SIMPLE catch-up, age 50 or over | 414(v)(2)(B)(ii) | $3,500 | $4,000 | pending |
| SIMPLE catch-up, age 60 to 63 | 414(v)(2)(E)(ii) | $5,250 | $5,250 | pending |
| SIMPLE catch-up, certain accounts | 414(v)(2)(B)(iii) | $3,850 | $3,850 | pending |
| SIMPLE additional nonelective contribution | 408(p)(2)(A)(iv) | $5,100 | $5,300 | pending |
| SEP minimum compensation for coverage | 408(k)(2)(C) | $750 | $800 | pending |
| Starter 401(k) or safe harbor 403(b) deferral (plus $1,100 at 50 or over) | 401(k)(16)(D)(i)(II) | $6,000 | $6,000 | pending |
| Qualified charitable distribution from an IRA | 408(d)(8)(A) | $108,000 | $111,000 | pending |
Source: IRS Notice 2025-67. Income ranges that decide whether an IRA contribution is deductible (single active participant $81,000 to $91,000; joint, contributor covered, $129,000 to $149,000) or whether a Roth IRA contribution is allowed ($153,000 to $168,000 single; $242,000 to $252,000 joint) are in the same notice and are worked through on Roth IRA contribution limits 2026.
One conflict inside the IRS’s own material. The copy of Publication 560 (2025) we saved, which carries a February 18, 2026 proof stamp, says the higher SIMPLE limit was “$18,100 for 2025”. Notice 2025-67 says that limit is “increased from $17,600 to $18,100” for 2026, and IR-2024-285 gives $17,600 for 2025. We use the notice and the news releases.
How the limit has moved: 2023 to 2026
The deferral limit is the one most readers search for, and the IRS announces it with a news release each autumn. The dates matter because the 2027 notice is next.
| Year | Elective deferral limit | Announced | IRS document |
|---|---|---|---|
| 2023 | $22,500 | not in our sources | Prior-year figure in IR-2023-203 |
| 2024 | $23,000 | November 1, 2023 | Notice 2023-75, IR-2023-203 |
| 2025 | $23,500 | November 1, 2024 | Notice 2024-80, IR-2024-285 |
| 2026 | $24,500 | November 13, 2025 | Notice 2025-67, IR-2025-111 |
| 2027 | pending | not announced on October 23, 2026 | no 2027 retirement notice in the IRS notices folder (latest posted: Notice 2026-65) |
Source: IRS news releases IR-2023-203, IR-2024-285 and IR-2025-111; our check of the IRS notices folder on October 23, 2026.
Room: how much you can actually put in
The limits above are ceilings. What a person can put in depends on pay, on who the employer is, and on the plan document. Publication 560 gives the rules in three pieces, and the third one is where self-employed readers lose money.
- Deferrals. Publication 560 says the deferral limit applies to the total a participant defers for the year to a SARSEP and to any 401(k), 403(b) or SIMPLE IRA plan, so it is one limit and not one per plan.
- Annual additions. For a defined contribution plan the annual additions to a participant’s account cannot exceed the lesser of “100% of the participant’s compensation” and “$70,000 for 2025 ($72,000 for 2026)”. Publication 560 adds that catch-up contributions “aren’t subject to the above limit”.
- Employer deduction. The deduction for contributions to a profit-sharing plan “can’t be more than 25% of the compensation paid” to participating employees. Elective deferrals “aren’t subject to the limit”, and up to $360,000 of each employee’s pay counts in 2026.
A self-employed owner (sole proprietor or partner). The owner is not paid compensation, so Publication 560 has a worksheet. Net earnings are net profit less the deduction for half of self-employment tax. The plan’s contribution rate is then reduced: a 25% rate becomes 0.200000, and the table’s own footnote says the deduction for the employer contribution “can’t be more than 20% of your net earnings”. Deferrals come on top. The worksheet is printed with 2025 figures ($350,000, $70,000, $23,500); the cases below use the 2026 figures that the publication’s text gives ($360,000, $72,000, $24,500).
| Case (our arithmetic) | Net earnings after SE-tax deduction | Deferral | Catch-up | Employer share (20%, capped) | Total | What binds |
|---|---|---|---|---|---|---|
| Solo 401(k), age 45 | $100,000 | $24,500 | $0 | $20,000 | $44,500 | The 20% rate |
| Solo 401(k), age 45, the input in Publication 560’s own example | $186,404 | $24,500 | $0 | $37,281 | $61,781 | The 20% rate |
| Solo 401(k), age 45 | $200,000 | $24,500 | $0 | $40,000 | $64,500 | The 20% rate |
| Solo 401(k), age 45 | $400,000 | $24,500 | $0 | $47,500 | $72,000 | The $72,000 limit |
| Solo 401(k), age 52 | $400,000 | $24,500 | $8,000 | $47,500 | $80,000 | $72,000 plus catch-up |
| Solo 401(k), age 61 | $400,000 | $24,500 | $11,250 | $47,500 | $83,250 | $72,000 plus catch-up |
Source: our arithmetic on the Deduction Worksheet for Self-Employed and Rate Table for Self-Employed in IRS Publication 560 (2025), with 2026 figures from Publication 560’s text and Notice 2025-67. Net earnings are an input: it is the Schedule C profit less the Schedule 1, line 15 deduction. The $186,404 comes from the publication’s filled-in example ($200,000 profit less a $13,596 deduction). Where $24,500 is deferred, the $72,000 limit starts to bind when 20% of net earnings reaches $47,500, which is $237,500.
An owner who is a W-2 employee of the company that sponsors the plan. Compensation is the W-2 pay. In our arithmetic, with $150,000 of pay the deductible employer share is up to $37,500 (25%), and with the $24,500 deferral the total is $62,000, so $10,000 of the $72,000 is left. Publication 560 says participants “may be permitted to make nondeductible contributions to a plan in addition to your contributions”, and that these must pass the actual contribution percentage test, so whether that $10,000 can be used is a plan-document question. With $400,000 of pay only $360,000 counts, 25% of it is $90,000, and the $72,000 limit binds: after the $24,500 deferral the employer share is $47,500 (our arithmetic).
SEP. An employer SEP contribution is the lesser of 25% of the employee’s compensation and $72,000; for the owner it is 20% of net earnings from self-employment. Our arithmetic: $72,000 takes $288,000 of employee pay at 25%, or $360,000 of owner earnings at 20%, which is the 2026 pay limit exactly. There is no deferral on top in a standard SEP.
SIMPLE. A participant can defer $17,000 in 2026, plus $4,000 at 50 or over or $5,250 at 60 to 63, which is $21,000 or $22,250 before any employer match (our arithmetic). The employer adds a dollar-for-dollar match up to 3% of pay, or 2% of pay for everyone. A new SIMPLE IRA can be set up between January 1 and October 1, so the 2026 window has closed (Publication 560, Table 1).
Which plan, by the cap alone. For one owner with no employees: a solo 401(k) gives the highest ceiling at moderate earnings, because the $24,500 is a fixed deferral and not a percentage of earnings; a SEP needs about $360,000 of earnings to reach $72,000; a SIMPLE tops out near $21,000 to $22,250. With employees the answer changes, because coverage and nondiscrimination rules apply. Our pages on solo 401(k) vs Roth IRA and solo 401(k) vs SDIRA cover what each account can hold and the tax on leveraged real estate inside it.
When the 2027 notice posts
Section 415(d) of the Code directs the Treasury to adjust the limits each year, and each limit has its own rounding step. The table shows how far a 2027 figure can move and what to compare. It gives no 2027 number, because none had been published on October 23, 2026.
| Limit | 2026 amount | Rounded down to a multiple of | Where the rule is | What to compare on release |
|---|---|---|---|---|
| Elective deferral | $24,500 | $500 | 26 U.S.C. 402(g)(4) | New figure against $24,500 |
| Catch-up, age 50 or over | $8,000 | $500 | 26 U.S.C. 414(v)(2)(C)(i) | Against $8,000; the age 60 to 63 amount is the greater of $10,000 or 150 percent of the 2024 age 50 amount ($7,500, so $11,250) and is indexed from 2026 on a July 1, 2024 base |
| Annual additions | $72,000 | $1,000 | 26 U.S.C. 415(d)(4)(B) | Against $72,000, then recompute the $237,500 owner break-even above |
| Defined benefit limit | $290,000 | $5,000 | 26 U.S.C. 415(d)(4)(A) | Against $290,000 |
| IRA contribution | $7,500 | $500 | 26 U.S.C. 219(b)(5)(C)(ii) | Against $7,500 |
| IRA catch-up | $1,100 | $100 | 26 U.S.C. 219(b)(5)(C)(iii) | Against $1,100 |
| SIMPLE salary reduction | $17,000 | $500 | 26 U.S.C. 408(p)(2)(E)(iii) | Against $17,000 and $18,100 |
Source: 26 U.S.C. 402(g)(4), 414(v)(2), 415(d)(4), 219(b)(5)(C) and 408(p)(2)(E), as published by the Legal Information Institute, read October 23, 2026; IRS Notice 2025-67 for the 2026 amounts.
Three releases give a window, and it is not a promise: November 1, 2023, November 1, 2024 and November 13, 2025. Several websites already publish “projected” 2027 limits. None is an IRS figure, and we do not repeat them. When the notice posts, the first columns of the tables above get a 2027 figure, and the break-even for self-employed owners is recomputed from the new $72,000-type limit.
Where the real estate side comes in
These limits cap the dollars that go in. They do not say what the account may hold. A 401(k) usually offers a menu, which is why the DOL 401(k) alternative investments page matters to anyone who wants real estate or private funds inside the plan. A self-directed IRA has its own prohibited-transaction rules, covered on self-directed IRA real estate rules. A large pre-tax balance also creates a later bill: money withdrawn after 73 must satisfy the rules on RMDs with illiquid IRA assets, and a Roth route is on the backdoor Roth pro-rata page.
What a reader can do with this
- Find your number. Under 50 the answer for an employee is $24,500; at 50 to 59 or 64 and over it is $32,500; at 60, 61, 62 or 63 it is $35,750, if the plan allows the higher catch-up. Then check the plan document, because the plan can be stricter than the law.
- Size the owner share before you fund it. If you are self-employed, take your Schedule C profit, subtract the Schedule 1 line 15 deduction, multiply by 0.20, add your deferral and compare with $72,000, plus catch-up. Take the result to your CPA before the return is due.
- Check the ordering of dates. A SIMPLE IRA had to be set up by October 1, 2026; Publication 560 lists other plan types as set up by the employer’s tax filing due date, including extensions. Payroll deferrals for 2026 can only come out of 2026 paychecks, so an employee’s last chance is the final 2026 pay period (our reading).
- Hold the 2027 plan until the notice. If you set payroll deferrals for 2027 in November or December, expect the figure to change on the day the IRS posts the notice, and re-read the plan’s election form.
- Keep the paper. Save Notice 2025-67 and the plan’s summary plan description with your records.
FAQ
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An email when the retirement plan and ira contribution limits numbers change
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Sources, read and saved on October 23, 2026: IRS Notice 2025-67 (irs.gov/pub/irs-drop/n-25-67.pdf); IRS Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), 2025 edition, copy with a February 18, 2026 proof stamp; IRS news releases IR-2025-111 (November 13, 2025), IR-2024-285 (November 1, 2024) and IR-2023-203 (November 1, 2023); 26 U.S.C. 219, 402, 408, 414 and 415 (Legal Information Institute). This is analysis of public documents, not investment, legal or tax advice.
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