How much money can I put into my IRA or employer-sponsored retirement plan?

IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are adjusted periodically to compensate for inflation and increases in the cost of living.

IRAs

For the 2026 tax year, you can contribute up to $7,500 (up from $7,000 in 2025) to all IRAs combined (the limit is adjusted periodically for inflation). If you have a traditional IRA as well as a Roth IRA, you can only contribute a total of the annual limit in one year, not the annual limit to each.

If you are age 50 or older, you can also make a $1,100 annual “catch-up” contribution.

Work-based retirement plans

Work-based retirement plans such as 401(k)s and 403(b)s have a $24,500 contribution limit in 2026 ($23,500 in 2025). Individuals age 50 to 59 and 64 and older can contribute an extra $8,000 each year as a catch-up contribution. Individuals who reach age 60 to 63 in 2026 can make catch-up contributions up to $11,250 [Section 403(b) and 457(b) plans may also provide special catch-up opportunities.]

SIMPLE plans

You can contribute up to $17,000 to a SIMPLE IRA or SIMPLE 401(k) plan in 2026, ($16,500 in 2025). Individuals age 50 to 59 and 64 and older can contribute an additional $4,000. Individuals who reach age 60 to 63 in 2026 can contribute an additional $5,250.

SIMPLE plans with 25 or fewer employees may allow up to $18,100 in contributions; $21,950 for those age 50 to 59 and 64 and older; and $23,350 for those who reach age 60 to 63 in 2026. Plans with more than 25 employees can elect these higher limits as long as they follow certain rules that require higher matching and nonelective contributions as well.

Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income, except for any after-tax contributions you’ve made, and the taxable portion may be subject to a 10% federal income tax penalty if taken prior to reaching age 59½ (unless an exception applies). If you participate in both a traditional IRA and an employer-sponsored plan, your IRA contributions may or may not be tax deductible, depending on your adjusted gross income.

This content has been reviewed by FINRA.