What This Rule Means
The Retirement Deferral Rule
Employer-sponsored plans (401(k), 403(b), 457(b), SIMPLE IRA) and individual accounts (traditional IRA, Roth IRA) have separate contribution limits that do not offset each other. You can max out both a 401(k) and an IRA in the same year.
How It Works
How Retirement Contribution Limits Work
- The SECURE 2.0 super catch-up allows workers aged 60–63 to contribute an additional to 401(k)/403(b) plans in 2026 — higher than the standard for age 50+.
- IRA contribution limits apply to the combined total across all traditional and Roth IRAs — you cannot contribute the full limit to each.
- Roth IRA contributions are restricted or eliminated based on MAGI — but Roth conversions from a traditional IRA have no income limit.
- Traditional IRA deductibility phases out if you (or your spouse) are covered by a workplace retirement plan and your income exceeds the thresholds.
- The total 415 limit (employee + employer contributions combined) for 401(k) plans is in 2026.
2026 Contribution Limits
Contribution Limits
| Account Type | 2026 Employee Limit | 2026 Catch-Up | 2025 Employee Limit |
|---|
Roth IRA Income Phase-Outs (2026)
| Filing Status | Phase-Out Begins | Phase-Out Ends (No Contribution) |
|---|
Example Scenario
Scenario: Maxing Out a 401(k) and IRA
Scenario — Age 62 Super Catch-Up
Teresa is 62, earns $130,000 filing Single, and contributes to both her employer's 401(k) and a Roth IRA.
Teresa can defer significantly more than someone under 50 — the super catch-up provision makes a meaningful difference in the final years before retirement.
Apply These Rules to Your Numbers
See how retirement deferrals factor into your total compensation.