October 1, 2026

With all the financial demands of everyday life, it can be easy to fall behind on saving for retirement. Fortunately, new tax rules introduced over the last several years can make it easier to get back on track.

Catch-Up Contribution Limits and Restrictions for Workplace Plans

Employees who are at least 50 years of age by the end of the calendar year can make catch-up contributions if their plan permits them, to standard 401(k), SARSEP, 403(b) or government 457(b) plans through salary deferrals. The 2026 limit for these extra contributions is $8,000, up from $7,500 in 2025. Plan participants of ages 60-63 during 2026 may be able to make a total catch-up contribution of up to $3,250, for a total of $11,250. However, employees whose 2025 FICA wages from the employer sponsoring the plan exceeded $150,000 must make 2026 catch-up contributions as designated Roth contributions, if catch-up contributions are available under the plan. Those contributions are included in taxable income currently.

Participants in 403(b) plans may have further options to build up their account balances. For SIMPLE 401(k) and SIMPLE IRA plans, a catch-up contribution limit of $4,000 applies for 2026, with a higher limit of $5,250 available to eligible employees ages 60-63. For all workplace retirement arrangements, catch-up contributions generally must be made by the end of the plan year (usually December 31). In general, salary deferrals may only get classified as catch-up contributions if the employee has reached the general annual contribution limit for the account.

Rules for Traditional and Roth IRAs

People who are at least age 50 by December 31, 2026 may make catch-up contributions to traditional and/or Roth IRAs of up to $1,100, a $100 increase over the 2025 limit. In combination with an increased general IRA contribution limit, this rule makes it possible for those 50 and over to contribute up to $8,600 to IRAs in 2026, or their taxable compensation for the year, if lower. As a reminder, IRA contribution limits apply to the total amount a person contributes to any number of traditional or Roth IRAs.

Other Options to Boost Retirement Savings

Even if you cannot make catch-up contributions because of age restrictions or other limitations on a workplace plan, you may still have opportunities to boost your retirement savings. For example, you could contribute to a health savings account (HSA), if you are eligible to do so. Any balance in your HSA that you do not need for medical expenses will continue growing into your retirement years. You will then have the option of either withdrawing funds tax-free for eligible healthcare costs, or taking taxed distributions for other purposes, although nonmedical HSA distributions before age 65 generally also face a 20% early withdrawal penalty tax. After age 65, nonmedical distributions are taxable but are not subject to that additional tax.