2026 401(k), IRA & HSA Contribution Limits Explained
The IRS has updated contribution limits for 2026, and understanding these changes is essential for effective tax planning and long-term financial strategy. In this video, we break down the key updates and the details that are often overlooked.
We cover contribution limits for employer-sponsored plans, including 401(k), 403(b), 457, and TSP accounts. For 2026, the employee contribution limit has increased to $24,500, with a total contribution limit of $72,000 when including employer contributions and after-tax options, if available.
We also explain catch-up contributions, including the standard $8,000 catch-up for those age 50 and older, and the enhanced catch-up of $11,250 for individuals ages 60 through 63. Additionally, we discuss how income thresholds may require catch-up contributions to be made on a Roth basis.
For IRAs, the 2026 contribution limit is $7,500, with an additional $1,100 catch-up for those age 50 and older. We also review income limits for direct Roth IRA contributions and when a backdoor Roth strategy may be necessary.
HSA contribution limits have also changed, with $4,400 for individual coverage and $8,750 for family coverage, plus a $1,000 catch-up for those over age 55. We highlight important nuances, including minimum deductible requirements for HSA eligibility and how employer contributions impact your limit.
The goal is not just to know the numbers, but to understand how these limits apply to your specific situation and how they fit into a broader financial plan.
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