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The IRS has released the official 2026 contribution limits for IRAs, employer-sponsored plans, and Health Savings Accounts (HSAs), and many of the increases provide meaningful opportunities for retirement savers, especially those nearing retirement age or self-employed individuals using SEP or Solo 401(k) structures. Whether you're contributing to a Traditional IRA, Roth IRA, SIMPLE plan, SEP IRA, employer-sponsored 401(k), or preparing for medical costs through an HSA, understanding the new limits and deadlines can help you maximize tax-advantaged savings. Below is a breakdown of the updates you need to know for 2026 planning.
For 2026, the combined Traditional and Roth IRA contribution limit is $7,500 for individuals under the age of 50 and $8,600 for those age 50 or older. Income phase-out ranges for Roth IRAs have also increased. Deductibility for Traditional IRA contributions depends on income and whether you or your spouse participate in a workplace retirement plan. IRA contributions for 2026 can be made until April 15, 2027, and contributions made in the first quarter of 2027 may be designated for tax year 2026 if you have not already met the contribution limit.
Self-employed individuals and business owners contributing to a SEP IRA may contribute up to $72,000 in 2026 (based on eligible compensation formulas). Because SEP contributions are employer-only contributions, no catch-up contributions are allowed. SEP contributions follow the employer's tax return deadline, including extensions.
SIMPLE plans also receive increases for 2026. The employee deferral limit is $17,000, with a $4,000 catch-up contribution for those age 50 or older. Additionally, individuals ages 60–63 may take advantage of a higher super catch-up contribution of $5,250. SIMPLE employee deferrals must be completed by December 31, 2026, and employer contributions follow the rules set in the plan.
The 2026 employee deferral limit for 401(k), 403(b), and most 457(b) plans is $24,500 for individuals under age 50. Those aged 50 or older may contribute up to $32,500 total with catch-up contributions, while individuals ages 60–63 can contribute up to $35,750 in employee deferrals due to the continued availability of the “super catch-up.”
The IRS §415 annual addition limit (the combined employee and employer contribution cap) rises to $72,000 for 2026. Importantly, catch-up contributions are not included in this limit. This means total contributions can reach $80,000 for individuals aged 50+ and $83,250 for those ages 60–63. This expanded headroom is especially beneficial for Solo 401(k) holders, who can maximize both employee and employer components.
HSAs remain a powerful tool for tax-advantaged savings, especially for those planning long-term healthcare expenses. For 2026, the HSA contribution limits increase to $4,400 for individuals with self-only HDHP coverage and $8,750 for those with family coverage. Individuals age 55 or older may also contribute an additional $1,000 catch-up. Like IRAs, HSA contributions for 2026 can be made until April 15, 2027.
Understanding deadlines is critical to preserving contribution eligibility:
All IRS contribution rules apply the same to Self-Directed accounts. Investors must ensure all investment income and expenses flow through the retirement account, not personal funds. Prohibited transaction rules still apply, including restrictions involving disqualified persons, self-dealing, collectibles, and life insurance. Contributions made between January 1, and April 15, may be attributed as prior-year contributions when applicable.
The 2026 contribution increases create meaningful opportunities for investors to maximize retirement and health savings across IRAs, employer plans, and HSAs. Always consult with your CPA, financial advisor, or tax professional to ensure contributions and investment decisions align with IRS rules and your overall retirement strategy.
Whether you're building a diversified portfolio through alternative assets or simply trying to boost long-term tax-advantaged growth, early planning can make a significant difference.
Mountain West IRA can help you open a Self-Directed IRA or Solo 401(k), so you can invest in what you know best.
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This post is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor for personalized advice.
Mountain West IRA, Inc. does not render tax, legal, accounting, investment, or other professional advice. If accounting, tax, legal, investment, or other similar expert assistance is required, the services of a competent professional should be sought.
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