Retirement planning: Contribution limits for 2026
Managing Director, Head of Wealth Planning and Advice, J.P. Morgan Wealth Management
The IRS released the retirement contribution limits for 2026 and we are breaking it down for you. Talk to a J.P. Morgan professional to begin planning your 2026 retirement contributions. And don't forget to reach out to tax professionals for tax advice.
From qualified defined benefit plan to traditional or Roth IRA
Maximum contribution
$7,500 ($8,600 if age 50 or over),
Maximum deduction
$7,500 ($8,600 if age 50 or over) for traditional IRA; no deduction for Roth IRA contributions.
Deadline for adoption
Due date of taxpayer’s federal tax return (not including extensions).
Last contribution date
Due date of taxpayer’s federal tax return (not including extensions).
Qualified defined contribution plan
Maximum contribution
- Employee Elective contribution: deferral up to $24,500 ($32,500 if age 50 or over).
- Employer Nonelective contribution: Lesser of $72,000 or 100% ($80,000 if age 50 or over) of participant’s compensation (reduced by any elective deferrals).
Maximum deduction
25% of all participants’ compensation, plus amount of elective deferrals made.
Deadline for adoption
Anytime up to the due date of employer's federal tax return (including extensions).
Last contribution date
- Employee Elective deferral: Due date of employer’s federal tax return (including extensions).
- Employer nonelective contribution: Due date of employer’s federal tax return (including extensions).
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Qualified defined benefit plan
Maximum contribution
Amount needed to provide an annual benefit no larger than the smaller of $290,000 or 100% of the participant’s average compensation for his or her highest three consecutive calendar years.
Maximum deduction
Based on actuarial assumptions and computations.
Deadline for adoption
Anytime up to the due date of employer's return (including extensions).
Last contribution date
Contributions generally must be paid in quarterly installments depending on the plan year; due 15 days after the end of each quarter (potentially subject to minimum funding requirements).
Simplified employee pension (SEP) IRA
Maximum contribution
Lesser of $72,000 or 25% of participant’s compensation.
Maximum deduction
25% of all participants’ compensation.
Deadline for adoption
Anytime up to the due date of employer’s federal tax return (including extensions).
Last contribution date
Due date of employer’s federal tax return (including extensions).
Savings Incentive Match Plan for Employees (SIMPLE) IRA and SIMPLE 401(k)
Maximum contribution
- Employee contribution: Salary reduction contribution up to $17,000 ($21,000 if age 50 or over).
- Employer contribution: Either dollar-for-dollar matching contributions, up to 3% of employee’s compensation, or fixed non-elective contributions of 2% of compensation.
Maximum deduction
Same as maximum contribution.
Deadline for adoption
Anytime between January 1 and October 1 of the calendar year. For a new employer coming into existence after October 1, as soon as administratively feasible.
Last contribution date
- Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made.
- Matching or non-elective contributions: Due date of employer’s return (including extensions).
The amount of salary deferrals someone can contribute to retirement plans is the individual limit each calendar year no matter how many plans (e.g., 401k, 403b, SIMPLE) they are participating.
Catch-up contributions allowed if permitted by the plan. Check with your employer.
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Managing Director, Head of Wealth Planning and Advice, J.P. Morgan Wealth Management
