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.
Recent years saw larger jumps in response to high inflation. For 2026, projections point to more typical, incremental adjustments. While the IRS won’t release official figures until October or November 2025, early projections suggest slight increases. 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 age 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 law also creates a “super catch-up” for workers ages 60 to 63, allowing contributions up to 150% of the standard catch-up limit. For 2026, that could mean as much as $12,000 in additional contributions.2
- 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 | Projected 2026 limit | 2026 catchup (ages) |
| 401(k) / 403(b) / 457(b) — elective deferral2 4 | $23,500 | $24,500 | · 50–59: $8,000
· 60–63: ≈ $12,000 (150% × $8,000) |
| Total employer + employee (401(k) / 403(b) / 457(b))2 4 | $70,000 | $72,000 | 50+: $80,000 (includes catchup) |
| IRA (traditional + Roth)3 | $7,000 | $7,500 | · 50+: $1,100 |
| SEPIRA (annual addition)3 | $70,000 | $72,000 | — |
| SIMPLE IRA4 | $16,500 | $17,000 | Catchup applies per SIMPLE rules (increase reflected) |
| Health Savings Account (HSA single / family)3 | $4,300 / $8,550 | $4,400 / $8,750 | Catchup (age 55+): no change in 2026 |
| FSA (healthcare FSA)3 | $3,300 | $3,400 | — |
Elective contributions
The base elective deferral for 401(k), 403(b), and most 457(b) plans is projected to rise by $1,000 to $24,500 in 2026.5 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 may allow up to $12,000 (150% of standard) in 2026.2
- If your Social Security wages exceed ~$150,000 with the same employer, catch-ups in 2026 must be made as Roth.1
SEP and SIMPLE adjustments
SEP limits will jump to $72,000, mirroring the defined contribution space. SIMPLE limits will move to $17,000.4
IRA and Roth phaseouts
The overall IRA contribution limit is projected to increase to $7,500, with the catch-up contribution increasing to $1,100. The income phase-out ranges are also projected to increase. For example, single filers may see the phase-out range rise from $81,000 to $91,000, while married filers could see it increase from $129,000 to $149,000.3
FSA and HSA
Contribution limits for flexible spending accounts and health savings accounts will see modest increases in 2026. The health FSA limit rises to $3,400, while HSA contributions increase to $4,400 for individuals and $8,750 for families.3
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 “401k 2026 Contribution Limit IRS for 2026: Deferral Caps, Catch-Ups, SIMPLE 401(k), Excess Deferrals & Annual Additions.” Federal Pension Advisors, June 6, 2025.
3 “2026 IRS Limits Forecast – March.” Milliman, April 14, 2025.
4 “COLA increases for dollar limitations on benefits and contributions.” IRS, Aug. 26, 2025.
5 “2026 401(k) Contribution Limit on Track for $1,000 Increase: Milliman.” 401k Specialist, April 18, 2025.
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