We’re heading into a unique year where the rules for retirement accounts are getting a lot more specific. For HR professionals, this means not only embracing additional paperwork but also explaining to employees why they might be forced into a Roth or why they’re suddenly phased out of an IRA.
We’ve listed a clear breakdown of what actually changed for 2026 so you have all you need to know about the updated Roth Limits and SECURE 2.0.
For the most part, this is where the real value is for your highly-compensated employees. The Roth 401K limits for 2026 allow a $24,500 deferral. This is quite a jump over the IRA.
The 2026 Roth IRA limits
For the most part, this is where the real value is for your highly-compensated employees. The Roth 401K limits for 2026 allow a $24,500 deferral. This is quite a jump over the IRA.
The Roth IRA Limits have now moved to $7,500 for anyone under 50. If you have employees over 50, they can now tack on an extra $1,100, bringing their total to $8,600.
But, there’s also a massive catch here. These Roth IRA Limits start to disappear for single filers making over $153,000. If they’re over that income threshold, they need to be looking at the workplace plan instead.
Roth 401K limits in 2026: What’s the ‘high earner’ advantage?
For the most part, this is where the real value is for your highly-compensated employees. The Roth 401K limits for 2026 allow a $24,500 deferral. This is quite a jump over the IRA.
The catch-up: For those aged 60-63, there’s a new ‘super’ catch-up of $11,250.
A $150k Rule: Under SECURE 2.0, if an employee makes over $150K, their catch-up contributions must be Roth. All things considered, this is one of the most important Roth Limits to communicate this year to avoid payroll headaches.
Total caps: The overall 401K limits for 2026 are now capped at $72,000.
What about workplace vs. individual accounts?
When comparing IRA limits to workplace plans, the biggest takeaway for HR professionals is that 401(k)s don’t have income caps. In short, you can make a million dollars and still hit the full Roth 401K limits for 2026.
While the IRA limits are the same $7,500 whether you go Traditional or Roth, the Roth version is usually the winner for long-term tax-free growth. But, keep in mind that the 401K limits for 2026 are per person, per employees. Whereas IRA limits are per individual across all their accounts.
What’s the ultimate takeaway for working professionals?
Most employees should be aiming to max out the workplace plan to grab the match, then looking at the Roth IRA limits if they have extra cash and fall under the income threshold.
The goal for HR professionals should be to simplify the use of 401(K) for the bulk of the savings and the IRA for the flexibility. Understanding these Roth limits will help you save a dozen ‘why did my contribution get rejected?’ emails during open enrollment.
Have any other questions about the 401(k) contribution limits for 2026? Share them with us so we can help with more updated articles on the various aspects of employment. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
