2026 Limits
IRA, SEP IRA, and SIMPLE IRA Contribution Limits for 2026
The IRS raised most retirement contribution limits for 2026 under Notice 2025-67. Here is what changed, what carried over, and how the deduction and Roth eligibility thresholds shift with income.
At a glance
2026 vs 2025 contribution limits at a glance.
A side-by-side reference for every personal and small-business retirement account. Source: IRS 2026 cost-of-living adjustments and IRS 2025 cost-of-living adjustments.
| Account type / threshold | 2026 | 2025 |
|---|---|---|
| Traditional and Roth IRA, under 50 | $7,500 | $7,000 |
| Traditional and Roth IRA, age 50+ catch-up | $1,100 (total $8,600) | $1,000 (total $8,000) |
| SEP IRA annual cap | $72,000 (25% of compensation) | $70,000 (25% of compensation) |
| SIMPLE IRA employee deferral | $17,000 | $16,500 |
| SIMPLE IRA age 50+ catch-up | $4,000 (total $21,000) | $3,500 (total $20,000) |
| SIMPLE IRA ages 60 to 63 enhanced catch-up | $5,250 (total $22,250) | $5,250 (total $21,750) |
| 401(k) employee deferral | $24,500 | $23,500 |
| Roth IRA, Single MAGI phase-out | $153,000 to $168,000 | $150,000 to $165,000 |
| Roth IRA, Married Filing Jointly MAGI phase-out | $242,000 to $252,000 | $236,000 to $246,000 |
| Traditional IRA deduction, Single (covered by workplace plan) | $81,000 to $91,000 | $79,000 to $89,000 |
| Traditional IRA deduction, MFJ (contributing spouse covered) | $129,000 to $149,000 | $126,000 to $146,000 |
| RMD age | 73 | 73 |
| Contribution deadline | April 15, 2027 | April 15, 2026 |
Traditional and Roth IRA contribution limits for 2026.
The IRS raised the personal IRA contribution limit for 2026. The limit applies to your total contributions across all Traditional and Roth IRAs combined, not per account.
- Under age 50: Up to $7,500 per year
- Age 50 and older: Up to $8,600 per year (the $7,500 base plus a $1,100 catch-up)
You must have earned income at least equal to your contribution. Contributions for the 2026 tax year can be made up to the federal tax filing deadline, generally April 15, 2027. Filing an extension on your tax return does not extend the IRA contribution deadline.
For background on how an IRA can hold alternative assets, see how a self-directed IRA works or compare Traditional and Roth account types.
Income thresholds for Roth IRA eligibility (2026 MAGI).
Your ability to contribute directly to a Roth IRA depends on your Modified Adjusted Gross Income and filing status. The 2026 thresholds, from the IRS Roth IRA page:
Single or Head of Household
- Full contribution: MAGI under $153,000
- Partial contribution (phase-out): MAGI $153,000 to $167,999
- Not eligible: MAGI $168,000 or more
Married Filing Jointly or Qualifying Widow(er)
- Full contribution: MAGI under $242,000
- Partial contribution (phase-out): MAGI $242,000 to $251,999
- Not eligible: MAGI $252,000 or more
Married Filing Separately (lived with spouse)
- Partial contribution: MAGI $0 to $9,999
- Not eligible: MAGI $10,000 or more
If your income is above the threshold, the backdoor Roth strategy is one common workaround. The strategy involves a non-deductible Traditional IRA contribution followed by a Roth conversion. It has tax implications when you hold any pre-tax IRA balances. Coordinate it with a tax advisor.
Traditional IRA deduction limits for 2026.
Anyone with earned income can contribute to a Traditional IRA. Whether the contribution is tax-deductible depends on whether you (or your spouse) are covered by a workplace retirement plan and on your MAGI. Source: the IRS Traditional IRA page.
- Single, covered by a workplace plan: Full deduction at MAGI $81,000 or less; phase-out ends at $91,000.
- Married Filing Jointly, contributing spouse is covered: Full deduction at MAGI $129,000 or less; phase-out ends at $149,000.
- Married Filing Jointly, contributing spouse not covered but other spouse is: Full deduction at MAGI $242,000 or less; phase-out ends at $252,000.
If neither spouse is covered by a workplace retirement plan, Traditional IRA contributions are fully deductible regardless of income.
SEP IRA contribution limits for 2026.
A Simplified Employee Pension (SEP) IRA is an employer-funded plan often used by small business owners and self-employed individuals. For 2026:
- Employers may contribute up to 25% of an employee's compensation, or
- $72,000 per participant, whichever is less
The $72,000 ceiling is the overall annual limit the IRS applies to every defined-contribution retirement plan, including SEP IRAs and solo 401(k)s. It is published in the IRS 2026 cost-of-living adjustments.
Key SEP IRA rules
- Contributions are employer-only. Employees cannot make their own salary deferrals.
- Employers must contribute the same percentage of compensation for every eligible employee.
- SEP contributions are tax-deductible to the business.
- SEP contributions do not count against the individual $7,500 Traditional or Roth IRA limit.
For how Accuplan administers SEP IRAs, see the SEP IRA plan page. Plan rules are covered in detail on the IRS SEP plan page.
SIMPLE IRA contribution limits for 2026.
A Savings Incentive Match Plan for Employees (SIMPLE) IRA is built for small businesses, typically those with fewer than 100 employees. SIMPLE IRAs accept both employee deferrals and employer contributions.
Employee deferrals
- Under age 50: Up to $17,000
- Age 50 and older: Up to $21,000 (the $17,000 base plus a $4,000 catch-up)
- Ages 60 to 63 (SECURE 2.0 enhanced catch-up): Up to $22,250 (the $17,000 base plus a $5,250 enhanced catch-up)
Employer contributions
The employer must choose one of the following:
- Dollar-for-dollar match of employee contributions, up to 3% of compensation, or
- 2% nonelective contribution for every eligible employee, regardless of whether the employee defers
Enhanced SECURE 2.0 election (some smaller plans)
SECURE 2.0 lets employers with 25 or fewer eligible employees, and larger employers that elect a higher match, raise the 2026 SIMPLE deferral cap to $18,100, with an age-50 catch-up of $3,850. Most plans use the standard limits above. If your employer adopted the enhanced election, check the plan document for which limits apply to you.
SIMPLE IRA limits are separate from Traditional and Roth IRA limits. That lets eligible individuals layer retirement strategies. For setup details, see the SIMPLE IRA plan page or the IRS SIMPLE IRA page.
SECURE 2.0 changes affecting 2026 contributions.
The SECURE 2.0 Act of 2022 introduced several changes that take full effect in 2026:
- Enhanced catch-up for ages 60 to 63. SIMPLE IRA and 401(k) participants in this age band get a larger catch-up contribution than the standard age-50 catch-up. For 2026 SIMPLE IRAs, that is $5,250, bringing the total deferral to $22,250. The enhanced window closes the year after the participant turns 63.
- Mandatory Roth catch-up for high earners. If your FICA wages (Box 3 of your W-2) from a given employer in 2025 were more than $150,000, your 2026 catch-up contributions to that employer's 401(k) or 403(b) must be Roth (after-tax). The IRS raised this threshold from the statutory $145,000 when it indexed the limit for the first time in Notice 2025-67. This rule applies per employer, and it does not apply to personal IRA catch-up contributions.
- 401(k) auto-enrollment for new plans. 401(k) and 403(b) plans established after December 29, 2022 must automatically enroll new employees at a starting deferral rate of 3% to 10% of pay. The plan must then auto-escalate the rate by 1% per year to a level at least 10% but no more than 15%. Several exceptions apply for small businesses and church or governmental plans.
- RMD age stays at 73. SECURE 2.0 shifted the RMD age to 73 for those reaching age 72 after 2022, and to 75 for those reaching age 74 after 2032. The 25% missed-RMD penalty was lowered to 10% if corrected within two years.
Full details are on the IRS SECURE 2.0 summary page.
Withdrawals, penalties, and exceptions.
Distributions from Traditional, SEP, and SIMPLE IRAs become penalty-free at age 59½ and are taxed as ordinary income. Roth IRA earnings are tax-free if the account has been open at least five years and the owner is 59½ or older.
Common exceptions to the 10% early-withdrawal penalty
- Death or disability of the account owner
- Terminal illness of the account owner
- Qualified higher-education expenses
- Unreimbursed medical expenses over 7.5% of AGI
- Health insurance premiums during certain periods of unemployment
- Qualified first-time home purchase (lifetime cap of $10,000)
- Substantially equal periodic payments (SEPPs)
- Qualified birth or adoption (up to $5,000 per child)
- Victim of domestic abuse (up to the lesser of $10,000 or 50% of the account)
- Federally declared disaster (up to $22,000 per disaster)
- Emergency personal expense (up to $1,000 per year)
Even when the penalty is waived, income tax still applies to the distribution. See the IRS early-distribution rules for the full list.
Required Minimum Distributions (RMDs).
Under SECURE 2.0, Required Minimum Distributions from Traditional, SEP, and SIMPLE IRAs begin at age 73. Roth IRAs do not have lifetime RMDs for the original owner.
- The first RMD may be delayed until April 1 of the year after you turn 73.
- Every RMD after the first must be taken by December 31 of that year.
- If you miss the deadline, the IRS applies a 25% penalty on the shortfall. The penalty drops to 10% if you correct it within two years.
For RMD calculations and worksheets, see the IRS RMD page.
How Accuplan administers your account.
Accuplan Benefits Services is a third party administrator for self-directed IRAs, SEP IRAs, SIMPLE IRAs, solo 401(k)s, and HSAs. We track contributions, file Form 5498 and Form 1099 with the IRS each year, and handle the recordkeeping for assets like real estate, precious metals, private equity, and crypto held inside your account.
Our fee structure is flat: $349.95 per year regardless of account size or number of assets. See the full breakdown on the Accuplan fees page.
Open a self-directed IRA or talk to a specialist if you want to walk through how the 2026 limits affect your contribution plan.
Frequently asked
2026 contribution limit FAQs.
Can I contribute to both a Traditional IRA and a Roth IRA in the same year?
Yes. Your combined contributions across all Traditional and Roth IRAs cannot exceed the annual limit. That limit is $7,500 for 2026, or $8,600 if you are 50 or older. You must also have earned income at least equal to the amount you contribute. See the IRS rules on IRA contribution limits for the full mechanics.
When is the 2026 IRA contribution deadline?
You can fund a 2026 IRA contribution any time from January 1, 2026 until the federal tax filing deadline in April 2027, generally April 15, 2027. Filing an extension on your tax return does not extend the IRA contribution deadline.
What happens if I contribute more than the annual limit?
The IRS treats the overage as an excess contribution and applies a 6% excise tax for each year the excess stays in the account. You can avoid the tax by withdrawing the excess plus any earnings before your tax filing deadline. The IRS guide to IRA contribution limits explains the correction options.
Are catch-up contributions automatic at age 50?
No. Catch-up contributions are an optional additional amount available to anyone who reaches age 50 by the end of the calendar year. For 2026, that is an extra $1,100 in a Traditional or Roth IRA and an extra $4,000 in a SIMPLE IRA. You have to choose to contribute the catch-up portion.
How do the new ages-60-to-63 enhanced catch-up contributions work?
Under SECURE 2.0, participants in SIMPLE IRAs and 401(k) plans who are ages 60, 61, 62, or 63 by year-end can use an enhanced catch-up amount. For 2026 SIMPLE IRAs, that enhanced catch-up is $5,250, bringing the total deferral to $22,250. The enhanced catch-up window closes the year after the participant turns 63. See the IRS SECURE 2.0 summary for the statutory background.
Can I still contribute to a Roth IRA if my income is above the phase-out range?
Direct Roth contributions are not allowed once your MAGI exceeds the upper threshold. Many high earners use a Traditional IRA contribution followed by a Roth conversion to put after-tax money into a Roth. This is sometimes called a backdoor Roth. The strategy has tax implications when you hold any pre-tax IRA balances. The IRS Roth IRA page covers eligibility and conversion rules.
Do SEP IRA contributions affect my personal IRA limit?
No. SEP IRA contributions are employer contributions and they do not count against the $7,500 personal IRA limit. You can fund both a SEP IRA through your business and a personal Traditional or Roth IRA in the same year, subject to each plan's own rules.
When do Required Minimum Distributions start?
Under SECURE 2.0, RMDs begin at age 73 for Traditional, SEP, and SIMPLE IRAs. Your first RMD can be delayed until April 1 of the year after you turn 73, and every RMD after that must be taken by December 31. Roth IRAs do not have lifetime RMDs for the original owner. The IRS RMD guide covers the calculation and timing rules.
This page summarizes IRS contribution limits for educational purposes. It is not tax, legal, or investment advice. Contribution limits, MAGI thresholds, and deduction rules can change. Consult a tax advisor before acting on any specific contribution strategy.