Each year, the IRS adjusts contribution limits for popular retirement and savings accounts — such as 401(k), IRA, and HSA plans — to keep pace with inflation. Because each plan type is indexed differently, updates don’t always happen across the board.
For 2026, the IRS released its new limits in Notice 2025-67, and the increases are modest but meaningful for many savers. The impact of SECURE 2.0 — particularly new Roth catch-up rules for higher earners — remains an important development to watch.
What’s changing in catch-up rules under SECURE 2.0?
For years, workers aged 50 and older have been allowed to make additional “catch-up” contributions beyond the standard retirement plan limit. The SECURE 2.0 Act introduces an important update to how those contributions are handled.
- Beginning in 2026, participants whose Social Security wages exceed a projected threshold of $150,000 (up from $145,000) must make catch-up contributions as Roth (after-tax) rather than pretax.1
- The earlier “super catch-up” for workers ages 60 to 63 remains in effect, with a catch-up cap of $11,250 for 2026, per Notice 2025-67.
- Lawmakers delayed the Roth catch-up requirement until 2026 to give employers and plan administrators time to update their systems and processes. However, if your employer’s plan does not currently offer Roth contributions, higher earners may be unable to make any catch-up contributions once the new rules take effect.1
2026 Contribution Limits – Comparison Table
| Plan / Account | 2025 limit | 2026 limit | 2026 catchup (ages) |
| 401(k) / 403(b) / 457(b) — elective deferral | $23,500 | $24,500 | 50–59: $8,000
60–63: catch-up to $11,2502 403(b) additional catch-up (15+ yrs of service): $3,000 |
| Total employer + employee (401(k) / 403(b) / 457(b)) | $70,000 | $72,000 | 50+: $80,000 (includes catchup)3 |
| IRA (traditional + Roth) | $7,000 | $7,500 | 50+: $1,100 |
| SEPIRA (annual addition) | $70,000 | $72,000 | — |
| SIMPLE IRA | $16,500 | $17,000 | 50–59: $4,000
60–63: catch-up to $5,250 |
| Health Savings Account (HSA single / family) | $4,300 / $8,550 | $4,400 / $8,7504 | Catchup (age 55+): + $1,000 standard (no change in addition)4 |
| FSA (healthcare FSA) | $3,300 | $3,4005 | — |
Elective contributions
The base elective deferral for 401(k), 403(b), and most 457(b) plans increases by $1,000 to $24,500 in 2026. Increasing your contribution rate even modestly can take advantage of this adjustment.
Catch-up shifts for older workers
Beginning in 2026, contribution limits and catch-up rules will adjust to give older savers more flexibility, but also add new conditions based on income and plan type. Here’s a look at what’s changing:
- If you’re 50 or older, your standard catch-up increases by $500 to $8,000.2
- For those age 60–63, the super catch-up remains $11,250 for 2026.2
- If you have FICA wages over $150,000 in 2025, any catch-up contribution in 2026 must be made as a Roth (after-tax) contribution.2
SEP and SIMPLE adjustments
SEP limits will jump to $72,000, mirroring the defined contribution space. SIMPLE limits will move to $17,000.
IRA and Roth phaseouts
The 2026 increase also extends to income thresholds that affect deductibility and eligibility for traditional and Roth IRAs. For example:
- For single filers covered by a workplace retirement plan, the traditional-IRA deduction phase-out begins at $81,000 and ends at $91,000, up from $79,000-$89,000 in 2025.
- For married couples filing jointly, with the contributor covered by a workplace plan, the phase-out range rises to $129,000-$149,000 (from $126,000-$146,000).
- Roth IRA contribution phase-out ranges also rise. For single filers (or heads of household) to $153,000-$168,000, and for joint filers to $242,000-$252,000.
FSA and HSA
Contribution limits for FSAs and HSAs have seen modest increases:
- HSA contribution limits rise to $4,400 for individuals and $8,750 for families.4
- Health FSA contribution limits increase to $3,400 in 2026.5
- The $1,000 HSA catch-up for those 55+ remains unchanged.4
What you should do now
- Plan your allocations early. With a $1,000 increase in elective deferrals, adjusting your contribution rate now (or in January) lets you capture the full benefit.
- Review plan Roth options. If you expect to exceed the Roth catch-up income threshold and your plan lacks a Roth option, you may lose catch-up eligibility entirely.
- Consider age-based enhancements. If you’re 60–63, evaluate whether you can leverage the super catch-up for 2026 and coordinate with payroll/plan administrators.
- Coordinate employer contributions. Talk with your employer about how matching or profit-sharing contributions are counted so you don’t accidentally exceed the new plan limits.
For more information, speak with your Wealth Advisor. If you are not a Mercer Advisors client and would like to learn more, let’s talk.
1 “IRS Proposes Key Changes to Roth Catch-Up Contributions Under SECURE 2.0.” Holland & Knight, May 29, 2025.
2 “2026 IRS Dollar Limits on Benefits, Contributions, and Recognizable Compensation.” Venable LLP, Nov. 14, 2025.
3 “Retirement Contribution Limits for 2026.” Voya, Nov. 14, 2025.
4 “HSA Contribution Limits and Eligibility Rules for 2025 and 2026.” Fidelity, Aug. 26, 2025.
5 “IRS Announces 2026 Retirement and Benefit Plan Limits, SSA Announces COLA Adjustment.” DLA Piper, Nov. 14, 2025.
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