2025 & 2026 Retirement Contribution Limits
Make Sure You’re Maximizing Every Opportunity
When we build a financial plan at Oleada, one of the first things we review each year is
retirement contributions.
Are you maximizing what’s available to you?
Are you using the right accounts?
Are you thinking strategically about taxes now and later?
The IRS has released updated contribution limits for 2026, and several accounts have
increased. Below is a clear breakdown of what changed and what it could mean for you.
Note: This article is for informational purposes only and does not constitute tax advice. IRS
limits can change. Please consult your tax professional regarding your individual situation.
Traditional IRAs & Roth IRAs For 2026:
2026 2025
Under Age 50 $7,500 $7,000
Catch-Up (50+) $1,100 $1,000
Age 50+ Total $8,600 $8,000
IRAs remain one of the most accessible and flexible retirement tools available.
The strategic decision is not just whether to contribute — it’s where to contribute.
● Traditional IRA: Potential tax deduction now.
● Roth IRA: Tax-free growth and tax-free qualified withdrawals later.
Many people focus on maximizing deductions in the short term. At Oleada, we zoom out. We
look at tax diversification across your lifetime — not just this year.
Roth IRAs in particular remain one of the most powerful long-term planning tools available
because contributions are made with after-tax dollars and qualified withdrawals are tax-free.
Income limits do apply to Roth contributions and Traditional IRA deductibility. If you’re above the
limits, there may still be strategic alternatives worth exploring.
SIMPLE IRAs for 2026:
2026 2025
Under Age 50 $17,000 $16,500
Catch-Up (50+) $4,000 $3,500
Age 60–63 Catch-Up $5,250 total $5,250 total
SIMPLE IRAs are designed for small businesses and require employer contributions, either as a
match or fixed percentage.
If you’re a small business owner, this can be a simple and cost-effective way to offer retirement
benefits. If you’re an employee, make sure you’re at least capturing the full match.
SEP IRAs for 2026:
2026 2025
Contribution Limit Lesser of $72,000 or Lesser of $70,000 or 25%
25% of compensation
Key reminders:
● Only employers can contribute.
● There are no catch-up contributions.
● Limits are based on compensation.
● The maximum applies regardless of age.
SEP IRAs are commonly used by self-employed individuals and business owners with variable
income. However, they are not always the most flexible option. In some cases, a Solo 401(k)
may provide more control and higher contribution potential.
Choosing the right structure matters.
401(k), 403(b), 457, and TSP Plans for 2026:
2026 2025
Under Age 50 $24,500 $23,500
Catch-Up (50+) $8,000 $7,500
Age 60–63 Catch-Up $11,250 total $11,250 total
Employer-sponsored plans are often underutilized.
Many people contribute only enough to receive the match. But if cash flow allows, you may be
able to contribute significantly more.
Important: Your 401(k) participation can affect the deductibility of IRA contributions. This is
where Modified Adjusted Gross Income (MAGI) becomes important.
IRA Income Limits (MAGI)
Traditional IRA Deductibility (2026)
Filing Status Phase-Out Range
Single / Head of Household $81,000–$91,000
Married Filing Jointly (you participate in plan) $129,000–$149,000
Married Filing Jointly (spouse participates) $242,000–$252,000
Married Filing Separately Under $10,000
If your income falls within the range, you may qualify for a partial deduction.
Roth IRA Contribution Limits (2026)
Filing Status Phase-Out Range
Single / Head of Household $153,000–$168,000
Married Filing Jointly $242,000–$252,000
Above these limits, direct Roth contributions are not permitted.
That does not necessarily mean Roth planning is off the table. There may be other strategies to
achieve tax diversification and long-term tax efficiency.
Beyond Retirement Accounts
Retirement planning does not exist in isolation.
Health Savings Accounts, defined benefit plans, employer stock strategies, Roth conversions,
and tax-efficient brokerage investing can all play a role in a cohesive plan.
At Oleada, we do not just ask, “What is the limit?”
We ask, “What is the most strategic way to use this limit given your income, goals, business
structure, and long-term vision?”
The Bottom Line
Contribution limits are only useful if you apply them strategically.
The real question is:
● Are you maximizing what’s available to you?
● Are you optimizing between pre-tax and Roth?
● Are you coordinating retirement contributions with your broader tax strategy?
● Are you building flexibility for your future self?
If you are unsure whether your 2025 or 2026 contributions are fully optimized, now is the time to
review.
Schedule a Retirement Contribution Review - Send me an email at briana@oleadafinanial.com to schedule your call.
Let’s make sure you are not leaving opportunity on the table.
Book a meeting with Oleada Financial to review your current contribution strategy and ensure
your retirement savings are aligned with your long-term goals.
Clarity creates confidence. And confidence compounds.
