Empowering Your Team's Financial Future

Empowering Your Team’s Financial Future: 2026 Retirement Plan Contribution Limits Every Business Owner Should Know

As a business owner, you’re constantly balancing the needs of your company, your employees, and your own long‑term financial wellbeing. One of the most impactful ways to support both your team and yourself is by offering a strong, future‑focused retirement plan. And with the IRS announcing increased contribution limits for 2026, now is an ideal time to evaluate—or implement—a plan that truly works for your business.

Below is a look at the new 2026 contribution limits and how they can help you build a workplace benefit that supports retention, boosts morale, and strengthens financial stability for everyone involved.

Higher 401(k), 403(b), and 457 Limits: More Room to Save

For 2026, the IRS increased employee contribution limits to   $24,500, giving your team and yourself an even greater opportunity to put money aside for the future. For those aged 50 and older, the   catch‑up contribution jumps to $8,000, for a total possible contribution of   $32,500.

And for workers aged   60–63, the enhanced catch‑up contribution remains at   $11,250, thanks to SECURE 2.0. This allows late‑career employees—and business owners—to supercharge their savings during peak earning years.

These increases can make a workplace plan even more attractive, helping you retain top talent while giving yourself the chance to ramp up your own retirement readiness.

IRA Limits Expand as Well

Whether you offer a SIMPLE IRA, SEP IRA, or traditional plan menu, the IRS has bumped the   traditional and Roth IRA limit to $7,500   in 2026. The age‑50 catch‑up contribution also increases to   $1,100, reflecting its new inflation‑indexed status.

Even if you already offer a workplace plan, many employees appreciate the ability to contribute to an IRA as well. These increased limits can serve as a powerful complement to your company’s plan.

Updated Income Phase‑Out Ranges

The IRS also raised income phase‑out ranges for traditional and Roth IRAs—important information if you or your employees contribute outside your workplace plan.

• Traditional IRA deductions   now begin phasing out starting at $81,000 for single filers and $129,000 for married couples filing jointly when the contributing spouse is covered by a workplace plan.
• Roth IRA eligibility   phases out between $153,000–$168,000 for single filers and $242,000–$252,000 for married couples filing jointly.

These changes open the door for more individuals to take advantage of tax‑advantaged retirement savings options.

SIMPLE IRA Limits Rise for Small Business Owners

If you operate a small business, a SIMPLE IRA is often an accessible, cost‑effective retirement plan. For 2026, the contribution limit increases to   $17,000. SECURE 2.0 also allows some plans to offer enhanced limits up to   $18,100. The age‑50 catch‑up is now   $4,000, and the enhanced catch‑up for those aged 60–63 remains   $5,250.

These increases give business owners and employees alike more room to save—even with a streamlined plan structure.

Why This Matters for Your Business

With contribution limits rising across the board, 2026 presents a powerful opportunity to:

• Launch a new retirement plan   if your business doesn’t yet offer one
• Upgrade your existing plan   by reviewing investment menus, matching formulas, or plan design
• Improve employee retention and recruitment, especially in today’s competitive talent market
• Build your own long‑term security   as a business owner—with savings strategies that align with your goals

A strong retirement plan is more than just a benefit—it’s an investment in the health and longevity of your business. Your employees feel supported, your company becomes more attractive to new talent, and you gain a structured path toward your own financial independence.

Ready to Make 2026 Your Best Year Yet?

Whether you're considering implementing your first workplace retirement plan or enhancing the one you already have, now is the perfect time to take action. With higher IRS contribution limits and new opportunities under SECURE 2.0, you have more flexibility than ever before to build a plan that truly benefits everyone.

If you'd like help evaluating your options or designing a retirement strategy tailored to your company’s needs, I’m here to help every step of the way.