Contribution limit

What It Means

A contribution limit is the maximum amount the IRS allows into a particular tax-advantaged accountTax-advantaged accountAn account the tax code rewards, such as a 401(k), IRA, HSA or 529 plan, where taxes are cut, delayed or skipped if you follow its rules. See more for one year. Each account type has its own limit: 401(k)401(k)A retirement plan run through an employer that lets you put part of each paycheck into investments, before tax or as Roth, up to a yearly IRS limit. See more-type plans, IRAs and health savings accountsHealth savings accountA tax-advantaged account for medical costs, open to people with an HSA-eligible health plan, where money goes in, grows and comes out for care without federal income tax. See more (HSAs) are counted separately. Many limits rise with inflationInflationA general rise in the prices of goods and services over time, so the same amount of money buys less than it did before. See more each year, and people past a set age can add an extra catch-up amount.

How People Say It

• "I hit the 401(k) limit in November."
• "What's the IRA limit this year?"
• "Once I turn 50 I get the catch-up."

The Breakdown

The 2026 limits, from the IRS

Worked example. Rosa is 61 in 2026, has a 401(k) at work, an IRA and family HSA coverage. Her limits add up like this: $35,750 in the 401(k), $8,600 in her IRA and $9,750 in the HSA, for $54,100 in total. Any employer match comes on top of the 401(k) figure, since the IRS caps her money and her employer's together at a separate $72,000 for 2026, before catch-ups.

What the result means. Each account's limit stands on its own, so filling one doesn't use up another. The IRA limit is one total across all your IRAs, though, whether traditional, Roth or both.

Good to Know

The catch-up for ages 60 to 63 applies to those who turn 60, 61, 62 or 63 during 2026, according to the IRS; at 64 the catch-up returns to $8,000. HSA catch-ups start at 55, not 50. If you go over a limit, contact your plan or IRA provider promptly, since excess contributions can owe extra tax; IRS Publication 590-A explains the rules for IRAs. The IRS usually publishes the next year's figures in the fall; check irs.gov before planning 2027.

Related Terms and Categories

• 401(k)

  A retirement plan run through an employer that lets you put part of each paycheck into investments, before tax or as Roth, up to a yearly IRS limit.

• Roth IRA

  An individual retirement account funded with after-tax money, where qualified withdrawals, earnings included, come out tax-free.

• Traditional IRA

  An individual retirement account where contributions may be tax-deductible, growth is tax-deferred, and withdrawals are taxed as income.

• Health savings account

  A tax-advantaged account for medical costs, open to people with an HSA-eligible health plan, where money goes in, grows and comes out for care without federal income tax.

• Roth 401(k)

  The Roth option inside a 401(k): you contribute after tax, and qualified withdrawals, earnings included, come out tax-free.

• Tax-advantaged account

  An account the tax code rewards, such as a 401(k), IRA, HSA or 529 plan, where taxes are cut, delayed or skipped if you follow its rules.

Saving and investing basics