How Do IRS Catch-Up Contribution Limits for 2026 Work?
- Adam Smith, CFP®
- 2 hours ago
- 9 min read
If you’re looking up IRS catch up contribution limits for 2026, you’re probably trying to answer a practical question: How much more can I put away this year—and what do I need to change in payroll to make it happen?
In 2026, the answer depends on both your age and, for many high earners, your prior-year wages.
At Covenant Wealth Advisors, we help financially successful families translate IRS rules into real-life execution—because the difference between “I intended to max it out” and “I actually maxed it out” is often a payroll setting, a plan feature, or a missed deadline.
Key Takeaways
The 2026 base limit is just the starting point—catch-ups sit on top if your plan allows them and you’re eligible.
The 60–63 “super catch-up” window is narrow—four birthdays—and can materially change your annual savings capacity.
The new Roth catch-up requirement is primarily an execution issue: plan features, payroll withholding, and W‑2 wage definitions matter.
Multi-plan households face a higher risk of excess deferrals and corrective distributions. Common reasons why someone might have access to multiple plans in a year include job changes, spousal plans, and simply having multiple jobs.
Maximizing retirement contributions can reduce liquidity and concentrate more of your wealth behind retirement plan distribution rules. We recommend that workers weigh taxable investing, emergency reserves, and tax planning as they consider how much to defer into their retirement plan(s) through work.
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What Changed with IRS Catch-Up Contribution Limits in 2026?
Catch-up contributions let eligible savers add money above the normal annual limit. For 2026, the base limit for 401(k)/403(b)/457(b)/TSP is $24,500. If you’re 50+, the catch-up is generally $8,000; if you’re 60–63, it’s generally $11,250. High earners may have Roth-only catch-ups.
The “Two-Layer” Idea: Base Limit + Catch-Up Limit
Most people hear “max your 401(k)” and assume there’s a single number. In reality, the IRS separates:
Base employee deferrals, and
Catch-up contributions for older workers.
For 2026, the IRS increased the base limit to $24,500 and increased the general age-50+ catch-up to $8,000. These changes come after significant tax reforms for 2025 impacting retirees and high-income earners.
The “Super Catch-Up” Ages: 60–63
SECURE 2.0 created a higher catch-up band for workers who attain age 60, 61, 62, or 63 in the year. The IRS guidance reflects that for 2026, this higher catch-up amount is $11,250 (instead of $8,000).
One important nuance: the $11,250 generally replaces the $8,000 for those ages. It’s not an “add-on.”
The Sleeper Issue for Affluent Households: Roth Catch-Ups
Starting in 2026, there’s a rule shift that matters more than the dollar increases: if your prior-year wages exceed a threshold, catch-up contributions in many employer plans must be made as designated Roth contributions (after-tax).
That wage threshold for 2026 catch-ups is based on 2025 wages, and the IRS set it at $150,000 for 2026 catch-up eligibility.
What Are the 2026 Catch-Up Contribution Limits by Account Type?
The IRS sets different contribution limits depending on the account. For 2026, most workplace plans share a $24,500 base limit, then add catch-ups ($8,000 for age 50+ or $11,250 for ages 60–63). IRAs are $7,500 with a $1,100 catch-up for age 50+. SIMPLE plans have separate, lower limits.
Below is the “at-a-glance” table we use to reduce confusion. Numbers are IRS-published for 2026.
2026 Contribution Limits at a Glance (Including Catch-Ups)
Account type | 2026 base limit | Age 50+ catch-up | Age 60–63 catch-up | Total max if eligible | Notes |
401(k) / 403(b) / TSP / 457(b) | $24,500 | $8,000 | $11,250 | $32,500 (50+) / $35,750 (60–63) | Roth-only catch-ups may apply if 2025 wages exceeded $150,000. |
SIMPLE IRA / SIMPLE 401(k) | $17,000 | $4,000 | $5,250 | $21,000 (50+) / $22,250 (60–63) | SIMPLE plans can have slightly varying limits depending on plan rules. |
Simplified Employer Plan (SEP IRA) | $72,000 (contribution limit is based on % of compensation) | N/A | N/A | $72,000 | Note that all contributions to SEP IRA accounts are considered Employer contributions. |
Traditional/Roth IRA | $7,500 | $1,100 | N/A (same $1,100) | $8,600 (50+) | IRA limits are separate from workplace plans; eligibility and deductibility can depend on income and workplace coverage. |
Overall defined contribution “annual additions” limit (IRC §415(c)) | $72,000 | (Catch-ups generally sit on top) | (Catch-ups generally sit on top) | Varies | Includes employee + employer contributions; catch-ups generally don’t count toward this cap. |
Source: IRS Notice 2025-67 and IRS IR-2025-111.
A Quick Note on “Maxing Out” Beyond Your Deferral Limit
If you’re a high earner with generous employer contributions (match/profit sharing) or after-tax plan features, the IRC §415(c) annual additions limit becomes relevant. For 2026, it’s $72,000 (catch-ups generally sit above this).
This is where affluent planning becomes less about “what’s the limit?” and more about “how do my contributions, employer contributions, and plan design interact?”
Do Catch-Up Contributions Have to be Roth in 2026?
Often, yes—if you’re a higher earner. For 2026, if your prior-year wages from the employer sponsoring the plan exceed the IRS threshold ($150,000 based on 2025 wages), catch-up contributions to many employer plans generally must be designated Roth contributions.
This rule doesn’t apply to SEP or SIMPLE IRA plans, and plan administration matters.
The Rule in Plain English
SECURE 2.0 added a rule that ties catch-up tax treatment to prior-year wages. If you’re above the threshold, catch-ups must be Roth (after-tax), made to a designated Roth account under IRC §402A.
For 2026, the IRS set the wage threshold used for 2026 catch-ups at $150,000 (based on 2025 wages).
Two Operational Implications Many Investors Miss
1) Your Plan Has to Support Roth Catch-Ups (Not Just Roth Contributions)
Notice 2023-62 explains a practical point: if a plan is subject to the Roth catch-up rule for any participant in a plan year, the plan generally must permit eligible participants to make catch-up contributions as Roth.
In other words: this isn’t just a personal election—it’s a plan feature issue.
2) Roth Catch-Ups Can Change Your Withholding and Cash Flow
Roth contributions are after-tax, which can reduce net pay relative to pre-tax contributions. That may call for a withholding update or a mid-year tax projection—especially for households already managing itemized deductions, estimated payments, or Medicare-related income thresholds.
As Scott Hurt, CFP®, CPA puts it: “For many high earners, 2026 isn’t just a bigger catch-up number—it’s a different tax wrapper for the catch-up dollars. Before you change payroll elections, it’s smart to confirm how your plan applies the rule and run a quick tax projection so the after-tax cash flow impact doesn’t surprise you.”
Risk and Tradeoffs (Balanced, not Brochure-Speak)
Catch-up contributions can be powerful, but they aren’t “free money,” and they introduce real-world tradeoffs:
Liquidity tradeoff: Retirement plan dollars are generally subject to distribution rules and potential penalties if accessed too early.
Market risk: Contributions are invested; balances can decline with market volatility.
Tax-law risk: Roth vs. pre-tax value depends on future tax rates, future income, and legislative changes.
Execution risk: Misapplied Roth catch-ups or multi-plan deferrals can create corrective distributions and tax reporting complexity.
How Do Catch-Up Limits Work if you Have Multiple Plans or Change Jobs in 2026?
The IRS limits follow you—not your employer. Your elective deferrals across multiple 401(k)/403(b) plans are generally aggregated under the IRC §402(g) limit, but catch-up contribution limits generally apply separately to each plan provided the employers are unrelated.
Job changes, multiple employers, and mixing plan types can increase the risk of excess deferrals and corrective distributions, so tracking is critical.
Scenario 1: You Switch Employers Mid-Year
If you contribute to two different 401(k) plans in 2026, the combined base deferrals generally must stay within the IRC §402(g) limit ($24,500), though catch-up contributions may be made to each plan if eligible.
Notice 2023-62 reiterates that elective deferrals to two or more plans are aggregated, but catch-up contribution limits under IRC §414(v) generally apply separately to plans of unrelated employers.
If you overshoot, you may need an excess deferral correction, and you could receive tax forms such as a Form 1099‑R for a corrective distribution. (This is fixable, but it’s paperwork and timing you’d rather avoid.)
Scenario 2: You Have Access to a Governmental 457(b) Plan
Governmental 457(b) plans have their own deferral limit under IRC §457(e)(15)—which for 2026 is also $24,500.
In many cases, a governmental employee may be able to contribute to a 401(k)/403(b) and a 457(b) up to their separate limits (plan rules apply).
This is one of the most meaningful “high-income saver” opportunities in the entire catch-up landscape—but it’s also where the Roth catch-up rule can add friction for 2026.
Scenario 3: You’re in a 403(b) with Special Catch-Up Features
Some 403(b) participants may have access to additional catch-up amounts (for example, a 15-year service catch-up) if the employer offers it, which can interact with age-based catch-ups.
This is an area where coordination with the plan administrator is especially important.
Practical Tracking Checklist (what we Recommend Affluent Households do)
Get your 2026 base limit and catch-up band right (50+ vs 60–63).
Confirm whether your plan supports Roth catch-ups and how the wage threshold is determined.
If you have two plans in one year, maintain a simple spreadsheet (date, plan, payroll amount) to avoid excess deferrals.
Coordinate with your CPA if you’re near thresholds (withholding, estimated payments, Roth vs. pre-tax mix).
As Megan Waters, CFP® notes: “In higher-income households, the biggest mistakes aren’t usually investment-related—they’re execution-related. A job change, a bonus cycle, or a plan that processes catch-up contributions differently can push someone into an excess deferral or an unintended tax outcome. A quick mid-year check-in can prevent a lot of cleanup work later.”
See How Our Financial Advisors Can Drive More Peace of Mind to Your Retirement
TAX PLANNING FOR RETIREMENT - identify tax reduction strategies including Roth conversions, RMD management, charitable giving and more...
RETIREMENT INCOME PLANNING - find out when you can retire and if you'll be able to maintain your lifestyle.
INVESTMENT MANAGEMENT - personalized investing to grow and protect your wealth in retirement.
Frequently Asked Questions
What is the 401k Catch-Up Contribution for 2026?
For 2026, the catch-up contribution for most workplace plans is $8,000 if you are age 50+. If you attain age 60–63 in 2026, the higher catch-up amount is $11,250 (generally in place of $8,000).
Will the IRA Contribution Limits Increase in 2026?
Yes. The IRA contribution limit increases to $7,500 for 2026, and the age-50+ IRA catch-up amount increases to $1,100 (total $8,600 if eligible).
What is the Contribution and Benefit Base for 2026?
For 2026, the Social Security contribution and benefit base (the “taxable maximum”) is $184,500.
What is the Enhanced Catch-Up Contribution for 2025?
For 2025, the higher “super catch-up” amount for those who attain age 60–63 is $11,250 for many employer plans (and $5,250 for SIMPLE plans).
Conclusion
Catch-up contribution rules in 2026 are about more than bigger limits.
For affluent investors, the real differentiators are (1) knowing which age band you’re in, (2) understanding whether catch-up dollars must be Roth, and (3) coordinating contributions across multiple plans without creating avoidable corrections.
At Covenant Wealth Advisors, we help clients evaluate these rules in the context of their broader retirement income plan—tax strategy, investment strategy, and “real life” cash flow. If you want to learn more about how to choose a financial advisor for retirement, we can help guide you through the process.
Would you like our team to just do your retirement planning for you? Contact us today for a complimentary retirement roadmap experience.
About the author:
Senior Financial Advisor
Adam is a Senior Financial Advisor with Covenant Wealth Advisors and a CERTIFIED FINANCIAL PLANNER™ practitioner. He has over 17 years of experience in the financial services industry in the areas of financial planning for retirement, tax planning, and investment management.
Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond, Reston, and Williamsburg, VA. Registration of an investment advisor does not imply a certain level of skill or training. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. This article was written and edited by a CERTIFIED FINANCIAL PLANNER™ professional with the assistance of AI. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible, no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice.