2026 IRA & Solo 401(k) Contribution Limits: What’s Changing and How to Plan

As we approach the new tax year, we want to make sure you’re aware of important IRS updates to retirement contribution limits that may impact how much you can save in IRAs and Solo 401(k) plans in 2026.

 These annual adjustments are designed to keep pace with inflation and create additional opportunities to build tax-advantaged retirement savings.

 IRA Contribution Limits

 2025

– Annual contribution limit: $7,000

– Catch-up (age 50+): $1,000

– Maximum (age 50+): $8,000

 2026

– Annual contribution limit: $7,500

– Catch-up (age 50+): $1,100

– Maximum (age 50+): $8,600

 This increase allows IRA holders to save more each year, whether contributing to a Traditional or Roth IRA (subject to income eligibility rules).

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 401(k) & Solo 401(k) Contribution Limits

 Employee Deferral Limits

 2025

– Standard contribution: $23,500

– Catch-up (age 50+): $7,500

 2026

– Standard contribution: $24,500

– Catch-up (age 50+): $8,000

 For Solo 401(k) plans, this employee contribution can still be combined with an employer profit-sharing contribution (generally up to 25% of compensation), allowing for significantly higher total annual contributions.

 Important 2026 Planning Note

 Beginning in 2026, certain higher-income individuals age 50+ may be required to make 401(k) catch-up contributions on a Roth (after-tax) basis rather than pre-tax. This change can affect tax planning strategies and cash flow, especially for business owners and self-employed individuals.

 What This Means for You

✔ Higher contribution limits = greater tax-advantaged savings potential  

✔ Solo 401(k) owners may be able to shelter more income  

✔ Roth vs. pre-tax strategies should be reviewed ahead of 2026  

✔ Year-end and early-year planning becomes even more important