2026 401k, IRA, and Roth IRA Contribution Limits Explained

January 1, 2026

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What are the 2026 401k contribution limits, IRA and Roth contribution limits, and also the income limitations? We’re going to go through those numbers for 2026 and give you a few tips and planning strategies, hopefully you can apply for your retirement.

401k Contribution Types: Pre-Tax, Roth, and After-Tax

Handwritten whiteboard showing “401k” with a $24,500 contribution limit and a separate section labeled “Catch Up (50+)” showing $8,000 with a note that catch up contributions are mandatory Roth.

Okay, right to the whiteboard. So remember with 401k contributions, you have your pre-tax, potentially Roth contributions, and maybe even after-tax contributions. So on a pre-tax basis, meaning you can take from your paycheck, deduct, not pay income taxes on that portion of your salary, increasing to $24,500 for 2026. If you are over the age of 50, it’s $8,000. That’s your catch-up contribution, but a new twist for this year.

If you’re over the age of 50 and you make a catch-up contribution, it’s mandatory that it goes into the Roth portion of your 401k. This means you have to pay taxes on that income. It’ll go into the tax-free part of your retirement plan, and it’ll grow tax-free from that point forward. So a little twist, the catch-up contribution for your 401k must go into the Roth portion. And remember, your company match, it can go into your pre-tax portion, or you can elect to have that go into the Roth portion of your 401k.

Maximum 401k Contribution Limits for 2026

Whiteboard diagram labeled “Total Possible = $72,000 + Catch Up” with three empty boxes underneath labeled Pre-Tax, Roth, and After-Tax to illustrate different 401k contribution types.

Now, just because $24,500 plus the catch-up is your deductible amount, you can still put more money into your 401k. You just don’t get a tax deduction for it. So you have the pre-tax part, you have a Roth part, hopefully, and you have an after-tax part.

Now, a couple of things here. Not all plans have the pre-tax, the Roth, and the after-tax. Additionally, even though the IRS now allows for what we call in-plan conversions, where you move money from the pre-tax part to a Roth and do an in-plan conversion, what we’re finding over the past couple of years is that a lot of plans have not amended their paperwork to actually allow this.

So just understand you have the pre-tax, you should or could have a Roth, and you should or could have an after-tax account. So the deductible part, 24.5, that’s the most you can put into here and get an income tax deduction for it. But 72,000 plus your catch-ups over the age of 50, $80,000.

This includes your contributions plus your employer’s match. The total amount that goes into your 401k or 403b or 457 cannot exceed 80,000 if you’re over the age of 50. But that money has to go into the Roth, the excess, the non-deductible. So anything above 24.5 that goes into your 401k plan has to go into the after-tax account.

Outdated 401k Plans and After-Tax Opportunities

If you are not able to do in-plan conversions, if you do not have a Roth account or an after-tax account, you probably have a very outdated 401k plan. That’s something that we can help you with. So if you’re a business owner, if you’re somewhere in the C-suite, if you’re an HR manager and you want to position your employees to have the opportunity to save more and do better for their own retirements, reach out to us.

Now, the reason why the after-tax contributions could be very, very important is when you put money into the after-tax account, you’ve already paid income tax on that. So when you actually retire or sever from service, you can take those after-tax contributions and roll them into a Roth IRA. And then all that growth for the rest of your retirement will be tax-free.

You can pass it on. You can grow up to 10 more years completely income tax-free. So huge benefit if you can save more than the 24.5 deductible amount and you’re capable and you want to go into the after-tax portion because you can’t put it in the Roth either.

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Discrimination Testing and the Mega Backdoor Roth IRA

The only thing to be aware of is there’s discrimination testing. Sometimes you can be limited by how much you put into the after-tax portion based on the contribution of everyone else in your company. So if you have a smaller company or a larger company, it may be more or less likely that you’re able to do this.

But part of the 401k planning is to get more people in your company to contribute to the 401k, which hopefully puts you in a position where you could put more into the after-tax account and then roll it over into a Roth once you retire.

Now, last thing here, the interest on any after-tax contributions will grow pre-tax and then they have to be rolled over into a traditional IRA upon retirement. You may have heard the term mega backdoor Roth IRA. This is all this is. It’s a fancy way of saying that you can put money into your after-tax up to 80,000 if you’re over the age of 50, 70,000 if you’re below 50, including your contributions and the employer.

Your company will cut you two different checks and you simply roll them over to those respective accounts.

IRA and Roth IRA Contribution Limits for 2026

Handwritten heading reading “2026 IRA & Roth” with the amount $7,500 plus a $1,100 catch up contribution for individuals age 50 and older highlighted in red.

Okay, moving to IRA and Roth contribution limits. Unlike 401ks, you actually have income limitations. It’s based on something called modified adjusted gross income.

The contribution limits have increased slightly, 7,500 plus $1,100 for the catch-up contribution if you’re over the age of 50.

Whiteboard showing “Income Limits” with a section labeled IRA indicating a single filer income phaseout range of $81,000 to $91,000 highlighted in red.

If you’re single, to contribute to an IRA, 81,000 to 91,000 is the phase-out range. If you’re above 91,000 of modified adjusted gross income, you cannot take an income tax deduction for your IRA contribution. Doesn’t mean you can’t make one, just means you can’t take an income tax deduction for it.

For Roth, if you’re single and your income is between 153 and 168, this is the phase-out range. If you’re above 168,000 of modified adjusted gross income, you are unable to contribute to a Roth IRA.

Handwritten chart showing income limits for Roth IRA contributions, including single filer range of $153,000 to $168,000 and married filing jointly ranges written below.

Married filing jointly, 129 to 149 for IRA deductions, 242 to 252 for Roth IRA contributions.

Remember, if you have a 401k, 403b, 457, or thrift savings plan, those income limitations do not apply to you.

Modified Adjusted Gross Income Explained

Screenshot of a Google search result titled “Additions to AGI to determine MAGI for IRAs” listing items such as IRA deductions, student loan interest, and foreign income exclusions.

So modified adjusted gross income. There are at least seven different calculations for modified adjusted gross income that apply to various internal revenue code benefits.

You take all of your gross income and then add back things you have deducted, such as IRA deductions, student loan interest, foreign earned income or housing exclusions, excluded U.S. savings bond interest, and excluded employer provided adoption benefits.

That number determines whether you can contribute to an IRA or a Roth or get a deduction.

After-Tax IRA Contributions and Backdoor Roth IRAs

Whiteboard titled “Back Door Roth” showing a contribution going into an IRA with notes stating no deduction, file Form 8606, no other IRA balances, and a highlighted warning referencing the step doctrine.

If your income exceeds those IRS set income limitations, you can still make an after-tax IRA contribution or possibly do a backdoor Roth IRA. You take money from your bank account or paycheck and deposit it into an IRA with no income tax deduction.

You have to file Form 8606 to track your basis.

The problem is this creates a proportionate ratio of money you owe income tax on and money you don’t. We call it the cream in the coffee rule. Once the cream is in the coffee, there’s no separating it.

It’s critical that you have no other IRA account balances because the pro rata rule applies across all IRAs.

Backdoor Roth Risks and the Step Doctrine

The backdoor Roth IRA is simple mechanically, but you have to be aware of the step doctrine. The IRS has not disallowed backdoor Roth IRAs, but there is a possibility they could challenge them in the future.

Some CPAs recommend making the after-tax contribution and waiting before converting. You would owe income tax on all pre-tax growth and not owe tax on your basis.

You still have to file the form every year and you still should not have any other IRAs in your name.

Final Thoughts

I hope this has been very helpful. If you’d like help with any of this or would like to talk, have a discussion, please reach out to us. Otherwise, thank you for watching, and we look forward to bringing you more videos.

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