2026 Retirement Numbers at a Glance
The IRS announced 2026 retirement plan limits in Notice 2025-67 (November 2025), and several numbers jumped meaningfully. Here’s the full reference table:
| Limit | 2025 | 2026 | Change |
|---|---|---|---|
| 401(k)/403(b)/457 employee deferral | $23,500 | $24,500 | +$1,000 |
| Catch-up (age 50+) | $7,500 | $8,000 | +$500 |
| Super catch-up (age 60–63) — NEW | N/A | $11,250 | New provision |
| Total contributions (employee + employer) | $69,500 | $72,000 | +$2,500 |
| Annual compensation limit (401(a)(17)) | $346,800 | $360,000 | +$13,200 |
| HCE threshold | $160,000 | $160,000 | Unchanged |
| IRA contribution limit | $7,000 | $7,500 | +$500 |
| IRA catch-up (age 50+) | $1,000 | $1,100 | +$100 |
| Roth IRA income phase-out (single) | $150K–$165K | $153K–$168K | +$3K |
| Roth IRA income phase-out (MFJ) | $236K–$246K | $242K–$257K | +$6K–$11K |
| Social Security COLA | 2.5% | 2.8% | +0.3 pp |
The Super Catch-Up: A Game-Changer for Ages 60–63
If you’re between 60 and 63 and still working, this is the most impactful change in decades:
You can contribute $35,750 total to your 401(k) in 2026 ($24,500 deferral + $11,250 super catch-up).
That’s $11,250 more than the old $8,000 catch-up, and it’s specifically designed for the “final sprint” years when many workers realize they haven’t saved enough.
The math on compounding:
- $11,250 extra per year × 5 years (ages 60–64) = $56,250 additional contributions
- At 7% average annual return: $56,250 grows to roughly $64,000–$67,000 by age 65
- In retirement at a 4% withdrawal rate: that’s $2,560–$2,680/year in additional income
Important: the super catch-up only applies in the calendar years you turn 60, 61, 62, or 63. At 64, you revert to the standard $8,000 catch-up.
The Roth Catch-Up Mandate: The Trap Nobody Talks About
Here’s the catch (pun intended) with the new SECURE 2.0 rules that fully phase in for 2026:
If your FICA wages exceeded $145,000 in the prior year (indexed to $160,000 for 2026), your catch-up contributions MUST go into a Roth 401(k).
What this means in practice:
| Your prior-year wages | Catch-up treatment |
|---|---|
| Under $160,000 | Can choose pre-tax OR Roth catch-up |
| $160,000+ | MUST be Roth (after-tax) catch-up |
| $160,000+ but employer has no Roth option | NO catch-up contributions allowed at all |
Why this matters: Roth contributions are made with after-tax dollars, so you pay income tax on that $11,250 NOW. If you’re in the 24% bracket, that’s $2,700 in additional tax this year — but it grows tax-free forever and has no RMDs during your working years.
Action: Check if your employer plan offers a Roth 401(k) option. If it doesn’t and you earn $160K+, you’ve effectively lost your catch-up contribution ability. Ask HR to add Roth — SECURE 2.0 requires plans to make it available.
Social Security: 2.8% COLA and What It Actually Buys
The 2026 COLA of 2.8% added roughly $53/month to the average retired-worker benefit ($1,927 → $1,981).
Key 2026 Social Security numbers:
- Earnings test (under full retirement age): $24,480/year — $1 withheld for every $2 earned above
- Earnings test (year reaching FRA): $65,160/year — $1 withheld for every $3 earned above
- Maximum taxable earnings: $184,500
- Maximum monthly benefit at FRA (age 67): approximately $4,172
The COLA problem: 2.8% sounds reasonable, but Medicare Part B premiums increased 5.2% for 2026 (from $185 to $194.60/month standard). For many beneficiaries on fixed incomes, the entire COLA increase gets eaten by the Medicare premium adjustment. If you’re on Social Security AND Medicare, your actual “take-home” increase may be closer to $40/month, not $53.
The “hold harmless” provision caps Medicare premium increases at the COLA amount — so if COLA is $53 and the premium increase is $9.60, you still net $43.60. But if you’re in a higher income bracket (IRMAA applies above $109,000 single / $218,000 MFJ MAGI from 2 years prior), you don’t get hold-harmless protection.
IRA Limits: Smaller Jump, Still Worth Maximizing
The IRA contribution limit moved to $7,500 ($8,600 with the $1,100 catch-up at 50+).
Pro tip for high earners: if your income exceeds the Roth IRA phase-out ($168K single / $257K MFJ), you can still contribute to a traditional IRA (non-deductible) and immediately convert to Roth — the “Backdoor Roth.” No income limit applies to conversions. The only complication is the pro-rata rule if you have existing traditional IRA balances.
How to Maximize Everything (Stacking Strategy)
For a 62-year-old earning $175,000/year with a Roth 401(k) option:
| Account | Amount | Tax treatment |
|---|---|---|
| 401(k) deferral | $24,500 | Pre-tax (reduces AGI) |
| Super catch-up (Roth) | $11,250 | After-tax (grows tax-free) |
| Employer match | ~$8,750 (50% of first 10%) | Free money |
| Backdoor Roth IRA | $7,500 | After-tax → tax-free growth |
| HSA (if eligible) | $4,400 + $1,000 catch-up | Triple tax-advantaged |
| Total retirement savings | ~$57,400 |
That’s $57,400 into tax-advantaged accounts in a single year — more than most people’s entire annual take-home pay.
What to Do This Quarter (Before Year-End)
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Check your contribution rate. If you’re not maxing the $24,500 deferral, increase it now. At 8 pay periods remaining, you need $3,062.50 per paycheck to hit the max.
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If you’re 60–63: confirm your employer has implemented the super catch-up. Some plans require a plan amendment and may not offer it until January 2027.
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If you earn $160K+: verify your plan offers Roth 401(k). Without it, your catch-up is blocked.
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Review your beneficiary designations. Contribution limits don’t matter if your account goes to the wrong person.
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If you’re 62+ and claiming Social Security soon: run your breakeven at openssa.org. The 2.8% COLA applies whether you claim at 62, 67, or 70 — but delaying to 70 earns you a 24% higher base benefit plus COLA on that higher base.
This article reflects IRS Notice 2025-67 and SSA 2026 COLA fact sheet as of October 23, 2026. Contribution limits are per-person, per-year. Consult a fee-only financial planner (NAPFA.org) for personalized retirement strategy.