Contribution limits change most years, adjusted for inflation. Here’s exactly where the 2026 contribution limits stand right now.
401(k), 403(b), and most 457 plans
$24,500 for the year. Those 50 and older can contribute an additional $8,000, and those aged 60-63 can use a higher catch-up of $11,250 instead, if their plan allows it.
401(k), 403(b), and most 457 plans: $24,500 for the year. Those 50 and older can contribute an additional $8,000.
Traditional and Roth IRA (combined limit)
$7,500 for the year, or $8,600 if you’re 50 or older. Note this is a combined limit across both account types — you can’t contribute $7,500 to a traditional IRA and another $7,500 to a Roth IRA in the same year.
SEP IRA (for self-employed/small business)
Up to $72,000 for 2026.
SIMPLE IRA
$17,000 for the year, plus an additional $4,000 if you’re 50 or older.
Roth IRA income phase-outs
Full contributions available for single filers under $153,000 and joint filers under $242,000, phasing out completely at $168,000 and $252,000 respectively.
Traditional IRA deduction phase-outs (if covered by a workplace plan)
Between $81,000 and $91,000 for single filers, and between $129,000 and $149,000 for the contributing spouse in a married couple.
One notable 2026 change
Starting this year, if you earned over $150,000 in FICA wages the prior year, your catch-up contributions to an employer plan must be made as Roth contributions (after-tax) rather than traditional (pre-tax).
Why this matters for dividend investors
These limits set the ceiling on how much you can shelter from taxes each year while building a dividend ETF portfolio — maxing out tax-advantaged space before investing in a taxable account generally makes sense for most people, since it avoids annual tax drag on dividends.
This page should be revisited every January when the IRS releases updated figures for the new tax year.
Related Articles
- IRA vs. 401(k): Which Should You Prioritize First? →
- What Is a Roth IRA and How Does It Work? →
- Traditional vs. Roth: How to Decide Which Is Right for You →
Enjoying This? Get More Like It
Join the newsletter for practical, no-hype dividend ETF strategies — delivered straight to your inbox. No spam, unsubscribe anytime.
A quick, honest disclaimer: I’m not a licensed financial advisor, and this isn’t personalized investment advice. It’s a framework I use and believe in, but your situation is your own — for anything specific to your finances, it’s worth talking to a qualified professional. Investing involves risk, including the potential loss of principal, and past performance doesn’t guarantee future results.