As we approach the end of 2025, the IRS has rolled out updated contribution limits for various retirement and savings accounts, reflecting inflation adjustments and ongoing provisions from the SECURE 2.0 Act. These increases provide opportunities for savers to bolster their nest eggs, but they also require careful planning to maximize tax advantages. Below, we’ll dive into an in-depth comparison between 2025 and 2026 limits for popular investment accounts, including 401(k)s, IRAs, SIMPLE IRAs, SEP IRAs, and HSAs. Note that Roth versions of these accounts (e.g., Roth 401(k) or Roth IRA) generally follow the same contribution limits as their traditional counterparts, though eligibility may depend on income levels. We’ll use tables to highlight the year-over-year changes, focusing on base contributions, catch-up contributions for older savers, and overall limits where applicable. These adjustments are designed to help combat rising costs, but remember: contributions must be made by the respective deadlines (e.g., April 15 for IRAs, or plan-specific for employer-sponsored accounts).
401(k), 403(b), and 457(b) Plans
Employer-sponsored plans like 401(k)s remain a cornerstone of retirement saving, with limits increasing modestly in 2026. The base elective deferral rises by $1,000, while catch-up contributions for those age 50 and older get a $500 boost. Additionally, the “super catch-up” for ages 60-63, introduced under SECURE 2.0, scales up proportionally (150% of the standard catch-up). The total defined contribution limit under IRC Section 415(c), which includes both employee deferrals and employer matches, also increases, allowing for higher overall savings in these plans.
| Category | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| Base Elective Deferral (under age 50) | $23,500 | $24,500 | +$1,000 |
| Catch-Up Contribution (age 50+) | $7,500 | $8,000 | +$500 |
| Total for Age 50+ | $31,000 | $32,500 | +$1,500 |
| Super Catch-Up (ages 60-63) | $11,250 | $12,000 | +$750 |
| Total for Ages 60-63 | $34,750 | $36,500 | +$1,750 |
| Overall Defined Contribution Limit (employee + employer) | $70,000 | $72,000 | +$2,000 |
Traditional and Roth IRAs
Individual Retirement Accounts (IRAs) see a more substantial base increase in 2026, jumping $500, while the catch-up for age 50+ gets indexed upward for the first time in recent years under SECURE 2.0. Roth IRAs have the same limits but are subject to income phase-outs (e.g., for 2026, full contributions phase out for singles with MAGI between $154,000 and $169,000, though exact figures may adjust).
| Category | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| Base Contribution (under age 50) | $7,000 | $7,500 | +$500 |
| Catch-Up Contribution (age 50+) | $1,000 | $1,100 | +$100 |
| Total for Age 50+ | $8,000 | $8,600 | +$600 |
SIMPLE IRAs
Savings Incentive Match Plan for Employees (SIMPLE) IRAs, often used by small businesses, follow a similar pattern with indexed increases. Catch-up contributions also rise, and super catch-ups apply for ages 60-63.
| Category | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| Base Elective Deferral (under age 50) | $16,500 | $17,000 | +$500 |
| Catch-Up Contribution (age 50+) | $3,500 | $4,000 | +$500 |
| Total for Age 50+ | $20,000 | $21,000 | +$1,000 |
SEP IRAs
Simplified Employee Pension (SEP) IRAs are employer-funded, with limits tied to compensation (up to 25% of pay) or the overall cap, whichever is less. The max rises in 2026, aligning with defined contribution adjustments.
| Category | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| Maximum Contribution (lesser of 25% compensation or cap) | $70,000 | $72,000 | +$2,000 |
Health Savings Accounts (HSAs)
HSAs, paired with high-deductible health plans (HDHPs), offer triple tax advantages for medical expenses. Limits edge up in 2026, with the catch-up for age 55+ remaining fixed at $1,000.
| Category | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| Self-Only Coverage | $4,300 | $4,400 | +$100 |
| Family Coverage | $8,550 | $8,750 | +$200 |
| Catch-Up (age 55+) | $1,000 | $1,000 | No change |
Note on Medicare Premium Increases for 2026
Medicare Part B premiums (covering outpatient services) are set to rise in 2026 to $202.90 per month, an increase of $17.90 (or 9.7%) from $185 in 2025. Higher-income beneficiaries may face additional surcharges via IRMAA. This hike, driven by projected utilization and costs, could eat into Social Security COLA gains for many
Social Security COLA Percentage Increases: A 10-Year Overview
The Social Security Administration adjusts benefits annually through cost-of-living adjustments (COLAs) to help beneficiaries keep pace with inflation, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2026, the COLA is 2.8%, which will apply to benefits starting in January 2026 (with the first increased payments reflected in December 2025 checks for some). This adjustment affects approximately 75 million recipients and aims to offset rising living costs, though recent years have seen variability due to economic fluctuations.
Below is a table summarizing the COLA percentages for the last 10 years (effective benefit years 2017–2026).
| Effective Year | COLA Percentage |
|---|---|
| 2017 | 0.3% |
| 2018 | 2.0% |
| 2019 | 2.8% |
| 2020 | 1.6% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% |
| 2026 | 2.8% |
These figures highlight a trend of higher COLAs in the early 2020s due to post-pandemic inflation spikes, tapering off in recent years. While the 2026 increase provides some relief, it may not fully cover escalating expenses like healthcare for all retirees.
In summary, 2026 brings welcome boosts to most account limits, encouraging proactive saving amid economic uncertainties.
https://www.irs.gov/pub/irs-drop/n-25-67.pdf – Official IRS notice on 2026 retirement plan limits
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits – IRS page on IRA contribution limits
https://www.irs.gov/pub/irs-drop/rp-25-19.pdf – Official IRS revenue procedure on 2026 HSA and HDHP limits
https://www.ssa.gov/news/en/cola/factsheets/2026.html – SSA’s 2026 COLA fact sheet
https://www.ssa.gov/cola/ – SSA’s official COLA information page
https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles – CMS fact sheet on 2026 Medicare Parts A & B premiums