If retirement savings feel behind, start by checking what you can contribute through work, whether your plan allows catch-up contributions, and what amount your budget can sustain. For 2026, eligible workers can contribute up to $32,500 to many workplace plans—or up to $35,750 if they turn 60, 61, 62, or 63 during the year and their plan offers the higher catch-up. Those are limits, not targets: the right next step depends on your plan, cash flow, taxes, and retirement timing.
What should you do first?
Get a clear picture of your savings and obligations before changing payroll contributions. Use a simple worksheet to record:
- Each retirement account, its balance, and whether it is a workplace plan, IRA, or another account type.
- Your current contribution amount or payroll percentage, plus any employer match you may be eligible to receive.
- Your take-home pay, regular bills, debt payments, and expenses you expect in the next few years.
- When you hope to stop working and what income sources you expect to have in retirement.
This inventory is a planning aid, not a diagnosis of whether you have “enough.” There is no single savings number in the rules below that determines whether a person is on track.
How can you increase workplace-plan contributions?
Check your plan before changing payroll
Ask your HR team or plan administrator whether the plan permits age-50 catch-up contributions, what election you need to make, and when payroll changes take effect. Confirm the account type, your contribution rate, and how the employer match works under your specific plan. The IRS limits do not establish a universal match formula or determine which contribution should come first.
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Also ask how the plan handles contributions if you reach the annual limit before year-end. Payroll treatment and plan features vary, so do not assume that a contribution election will automatically preserve a match or spread contributions evenly across pay periods.
Use the limit that applies to your plan and age
The following are 2026 employee contribution limits announced by the Internal Revenue Service in 2025. A catch-up is available only if the plan permits it and you meet the applicable rules. The age-60–63 amount applies to a participant who turns 60, 61, 62, or 63 during 2026.
| Account or plan | Regular 2026 limit | Age-based catch-up | Potential employee total |
| Most 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan | $24,500 | $8,000 for eligible participants age 50 or older; $11,250 instead for eligible participants turning 60–63 in 2026 | $32,500 with the general catch-up; $35,750 with the age-60–63 catch-up |
| SIMPLE IRA salary-reduction plan | $17,000 | $4,000 for eligible participants age 50 or older; $5,250 instead for eligible participants turning 60–63 in 2026 | $21,000 with the general catch-up; $22,250 with the age-60–63 catch-up |
These totals combine the employee limit and the relevant catch-up; they are not promises that a plan will accept the full amount. The SIMPLE plan limits are separate from the limits for most 401(k) and 403(b) plans. Employer contributions are not included in the employee totals shown here.
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Check whether a 403(b) service-based increase applies
Some 403(b) participants with at least 15 years of service at the same eligible employer may qualify for an additional elective-deferral limit if their plan permits it. The extra amount is the least of $3,000, the remaining amount under a $15,000 lifetime cap, or $5,000 multiplied by years of service minus prior elective deferrals counted under the rule. Ask the plan administrator to determine whether you qualify and how prior contributions affect the calculation.
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For 2026, IRS guidance says that an eligible participant whose prior-year wages from the plan sponsor exceeded $150,000 must make catch-up contributions as Roth contributions when the plan has Roth features. The IRS also notes that the regulations’ general applicability date is after 2026, with exceptions. Because payroll implementation may depend on the plan’s arrangements, confirm how your employer is applying the rule before relying on a particular tax treatment.
Can an IRA help you save more?
An IRA may be another route if you have contribution capacity, but eligibility and tax treatment differ from workplace plans. For 2026, the IRS limit is $7,500, plus a $1,100 catch-up for eligible people age 50 or older, for a potential total of $8,600. Check the current IRS rules and your tax situation before contributing.
Roth IRA
Roth IRA eligibility phases out at higher modified adjusted gross income, with the applicable range depending on filing status. If your income is near or above the relevant range, verify eligibility rather than assuming that you can contribute directly.
Traditional IRA
You may be able to contribute to a traditional IRA, but whether the contribution is deductible can be limited by income and whether you or your spouse are covered by a workplace plan. A tax professional or the IRS’s current IRA guidance can help you distinguish the ability to contribute from the ability to deduct that contribution.
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Translate an annual goal into a payroll election only after checking your pay schedule and remaining pay periods. For example, divide the amount you intend to add for the rest of the year by the number of paychecks left; do not divide by an assumed number of checks. Your employer’s payroll deadlines and the plan’s contribution rules may affect the result.
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You do not have to jump straight to the legal maximum. Choose an increase that fits after essential bills and debt payments, then review it when income or expenses change. Avoid funding a higher contribution by taking on costly new debt or falling behind on necessities. If the contribution would be difficult to sustain, a smaller increase that you can maintain may be more practical than an aggressive election you soon reverse.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Could you qualify for the Saver’s Credit?
For 2026, the IRS lists these adjusted gross income thresholds for the Saver’s Credit:
- $80,500 for married filing jointly.
- $60,375 for head of household.
- $40,250 for single filers or married people filing separately.
These are income thresholds, not a guarantee that you qualify or a statement of the credit amount. Check the current IRS eligibility rules for your filing status and circumstances.
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Which choices need individual advice?
Contribution limits tell you how much may be allowed; they do not determine the best tax treatment, investments, retirement date, or withdrawal plan for you. Traditional-versus-Roth choices depend on your tax circumstances now and later. Investment mix and withdrawal decisions depend on your time horizon, risk tolerance, and other resources. Social Security claiming and health-care costs can also change what retirement timing is workable.
For those decisions, use official personalized tools and consult a qualified tax, financial, or benefits professional when your situation is complex. In particular, get plan-specific guidance if you have multiple employers or accounts, a 403(b) service-based catch-up question, or uncertainty about how catch-up contributions will be processed.
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