Planning for retirement means more than just saving — it means maximizing contributions to take advantage of tax benefits, long-term growth, and compounding returns. But how much can you contribute, and what are the limits? In this post, we’ll break down the current contribution limits for major retirement accounts — and show how using Hive Tax AI to research these rules can help you stay on top of changes and optimize your savings strategy.
2025 and 2026 Contribution Limits at a Glance
Internal Revenue Service (IRS) Updates
- For 2026, employees participating in 401(k), 403(b), most 457 plans, or the federal government’s Thrift Savings Plan (TSP) can contribute up to $24,500 — up from $23,500 in 2025.
- For individuals aged 50 or older, “catch-up” contributions increase: the catch-up limit jumps to $8,000 in 2026 (up from $7,500 in 2025).
- For employees aged 60–63, some plans allow a “super catch-up” of up to $11,250.
- Combined employee + employer contributions (for defined contribution plans) in 2026 are capped at $72,000.
Individual Retirement Accounts (IRAs)
- For 2026, the annual contribution limit to an IRA (Traditional or Roth) is $7,500 for individuals under age 50 — up from $7,000 in 2025.
- For those aged 50 or older, the catch-up contribution limit rises to $8,600 in 2026 (reflecting an $1,100 catch-up allowance).
- Note: the limit applies across all IRAs combined (Traditional + Roth).
Why Contribution Limits Change — And What That Means for You
The reason these limits tick up over time is largely due to inflation adjustments and cost-of-living indexing by the IRS.
For savers, rising limits present recurring opportunities:
- If you’re under 50, topping off your 401(k) or IRA annually gets easier with higher thresholds.
- If you’re 50+, catch-up provisions give you extra room to accelerate retirement savings — especially helpful if you started later or want to boost retirement readiness.
- For high earners or savers with employer matches, the combined (employee + employer) caps mean you can significantly increase your dollar-value contributions.
- Higher limits also encourage revisiting your retirement strategy each year, ensuring you don’t miss out on tax-advantaged savings.
How You Can Benefit — And Why Research Matters
Maximizing retirement contributions isn’t just about knowing the numbers — it’s about using them smartly. For example:
- Deciding between contributing to a traditional 401(k) vs Roth 401(k) or splitting across both.
- Understanding catch-up eligibility and whether your plan allows super catch-ups (age 60–63).
- Coordinating contributions across employer plans and IRAs to optimize tax and savings outcomes.
- Staying compliant with IRS annual contribution and deduction rules — especially if income or filing status affects IRA deductibility.
That’s where Hive Tax AI can add real value: by quickly analyzing the latest IRS limits, projecting tax impact, and helping you design a personalized savings strategy. With Hive Tax AI, you can:
- Get up-to-date retirement contribution limits for 401(k), IRA, 403(b), and other plans.
- Assess catch-up contribution eligibility based on your age and filing status.
- Model long-term retirement savings — factoring in employer match, catch-up contributions, and tax deductions.
- Incorporate the latest legislative updates (like changes under the SECURE 2.0 Act) to stay ahead of the curve.
Bottom Line: Don’t Leave Money On The Table
As contribution limits increase, more room opens up for tax-advantaged savings. Whether you’re just starting retirement planning or trying to boost savings before retirement, it’s smart to revisit your contributions each year.
Use a tool like Hive Tax AI to research current rules, simulate savings scenarios, and optimize your retirement plan. That way, you maximize tax benefits — and make the most of every dollar you can put toward your future.