Contribution limits

Explanation

Tax-advantaged accounts limit how much you can contribute each year. Approximate 2026 limits:

Account	Base limit	Catch-up
401(k), 403(b), most 457(b) (employee deferrals)	$24,500	+$8,000 at 50+; +$11,250 instead at ages 60–63
Traditional and Roth IRA (combined)	$7,500	+$1,100 at 50+
HSA	$4,400 self-only / $8,750 family	+$1,000 at 55+
SIMPLE IRA	$17,000	+$4,000 at 50+ (higher for some plans)

A few rules worth knowing:

• The 401(k) employee limit is shared across all your workplace plans (traditional plus Roth), even with different employers. The total including employer contributions is capped separately (about $72,000 in 2026, not counting catch-ups).
• Starting in 2026, if your prior-year FICA wages from the employer exceeded about $150,000, your 401(k) catch-up contributions must go into the Roth side.
• IRA contributions require earned income. Roth IRA eligibility phases out at higher incomes (roughly $153,000 to $168,000 single and $242,000 to $252,000 joint in 2026). Deducting traditional IRA contributions phases out if you or your spouse has a workplace plan and income is above certain levels.
• Limits are announced each fall and usually rise with inflation. Check the IRS’s current figures before acting, since these numbers change.

In scenarios, the app caps contributions at these limits (indexing them forward by your inflation assumption) and sends any excess savings to a taxable account.

Example

You are 52 in 2026 and want to save as much as possible in tax-advantaged accounts.

• 401(k): $24,500 + $8,000 catch-up = $32,500
• IRA: $7,500 + $1,100 catch-up = $8,600
• HSA (family coverage, under 55): $8,750
• Total: $32,500 + $8,600 + $8,750 = $49,850

At age 61, your 401(k) catch-up would be $11,250 instead, raising the 401(k) total to $35,750.