Updated October 1, 2026. Quick answer: The 2026 limit on salary reduction contributions to a SIMPLE IRA is $17,000 for most employees. A higher $18,100 limit applies in certain plans. Employees 50 and older can add a $4,000 catch-up, and those 60 to 63 can add $5,250. The IRS set these in Notice 2025-67.
Related reading on this site: IRS Publication 560.
More IRS forms and schedules, read line by line: Form 5304-SIMPLE instructions and Form 5305-SIMPLE instructions.
More IRS forms and schedules, read line by line: Form 8888 instructions.
More IRS forms and schedules, read line by line: Schedule 1 (Form 1040) guide.
2026 SIMPLE IRA limits
| Limit | 2026 | 2025 |
|---|---|---|
| Salary reduction contributions, most employees | $17,000 | $16,500 |
| Higher limit in certain plans | $18,100 | $17,600 |
| Catch-up, age 50 and over | $4,000 | $3,500 |
| Catch-up, ages 60 to 63 | $5,250 | $5,250 |
| Catch-up in certain plans, age 50 and over | $3,850 | $3,850 |
| Additional nonelective contribution limit | $5,300 | $5,100 |
The notice says the general limit “is increased from $16,500 to $17,000.” The catch-up for most plans is “increased from $3,500 to $4,000.”
What the totals add up to
A SIMPLE IRA participant 50 or older can defer up to $21,000 in 2026, and one aged 60 to 63 up to $22,250. Both totals are computed here from the sourced limits. Publication 560 reported the 2025 equivalent as $20,000 for those 50 and over, which matches the $16,500 and $3,500 shown in the table.
Higher limits in certain plans
Under SECURE 2.0 some SIMPLE plans qualify for higher amounts. The notice says that limit is “increased from $17,600 to $18,100.” It says the matching catch-up “remains $3,850.” Ask the plan sponsor which limit applies; most employees use the $17,000 figure.
SIMPLE IRA or SEP IRA
A SEP IRA has a very different limit, based on a percentage of pay up to $72,000. See the SEP IRA limit page for the comparison.
Common mistakes
- Using the 401(k) limit of $24,500. SIMPLE plans have their own, lower limits.
- Adding the $4,000 and $5,250 catch-ups. Ages 60 to 63 get the higher one instead.
- Assuming the $18,100 limit applies to every SIMPLE plan. It applies only to certain plans.
- Forgetting that employer contributions are separate from the employee salary reduction limit.
Related: the 2027 SIMPLE IRA page, the SEP IRA limit page, and the 2026 retirement numbers hub.
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Answer againSources
- IRS Notice 2025-67, 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living: https://www.irs.gov/pub/irs-drop/n-25-67.pdf
- IRS news release IR-2025-111 (Nov. 13, 2025), 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
- IRS Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans): https://www.irs.gov/publications/p560
Sources: the primary documents linked above, read on October 1, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.