Two accounts come up the moment anyone starts saving for retirement in the US: the 401(k) and the Roth IRA. The funding order is fairly settled. The numbers change every year, though, which is why so many articles still quote limits that are two years stale.
So we opened five IRS pages and checked the 2026 figures directly. In the process we found one place where two IRS pages contradict each other — it is set out below, exactly as written.
1. What you can put in. For 2026: $24,500 into a 401(k), $7,500 across all IRAs (traditional and Roth combined). At 50+, add $8,000 and $1,100 respectively.
2. What people get wrong. The Roth IRA drops to zero inside its phase-out band — $153,000–$168,000 single (how much is left in between is worked out separately). And the IRS does not set match rates or vesting schedules; your plan document does.
3. What to do. The order is match → Roth IRA → max the 401(k). IRA contributions run until next year's filing deadline (usually 15 April), so passing 31 December is not the end of it.
As of August 2026 — the 401(k) elective deferral limit is $24,500 ($8,000 more at 50+), the IRA limit is $7,500 ($1,100 more at 50+). Roth IRA phase-out runs $153,000–$168,000 single and $242,000–$252,000 married filing jointly.
Start with the 2026 limits — the two accounts are not the same size
| Item | 401(k) | IRA (traditional + Roth combined) |
|---|---|---|
| 2026 base limit | $24,500 | $7,500 |
| 2025 | $23,500 | $7,000 |
| Catch-up at 50+ | $8,000 | $1,100 |
| Total at 50+ | $32,500 | $8,600 |
| Catch-up at 60–63 | $11,250 | not applicable |
Ages 60 to 63 get their own, larger catch-up. The IRS wording is “this higher catch-up contribution limit is $11,250.” At 50–59 and again from 64 it is $8,000 — only that four-year window gets $11,250, which totals $35,750 (our arithmetic).
The IRA limit is $7,500 across traditional and Roth combined. The source is explicit: “The total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than” the limit. Opening two accounts does not double it.
The ceiling few people quote — $72,000 in total
Above your own deferral limit sits a second ceiling: the annual total of everything that lands in the account, employer match and profit sharing included.
| Item | 2026 | IRS wording |
|---|---|---|
| Overall limit, section 415(c) | $72,000 | “the lesser of 100% of compensation, or $72,000” |
| Including catch-up (50+) | $80,000 | stated on the page |
| Including catch-up (60–63) | $83,250 | stated on the page |
| Compensation limit | $360,000 | pay above this is cut off for plan purposes |
The figures reconcile. $72,000 + $8,000 = $80,000 and $72,000 + $11,250 = $83,250 — exactly the numbers the IRS prints (we checked). So catch-up sits on top of the overall limit rather than inside it.
The $360,000 compensation limit is where a match formula stops counting. Earn $500,000 and a “6% of pay” match is computed on $360,000, not on the full salary.
The Roth IRA income band gets narrower when you marry
| Filing status | 2026 modified AGI | Band width | 2025 |
|---|---|---|---|
| Single / head of household | $153,000 – $168,000 | $15,000 | $150,000 – $165,000 |
| Married filing jointly | $242,000 – $252,000 | $10,000 | $236,000 – $246,000 |
| Married filing separately | $0 – $10,000 | $10,000 | unchanged |
The single band is wider than the joint one. A single filer's allowance tapers across $15,000; a married couple's goes from full to zero in $10,000. The same dollar of extra income cuts a couple's allowance 1.5 times faster (our arithmetic).
And the threshold is not double either. $242,000 ÷ $153,000 = 1.58 (our arithmetic). Two single people earning $150,000 each can both contribute in full; married, on the same combined $300,000, neither can.
The year-on-year increases differ too — single rose $150,000 → $153,000, a $3,000 move; joint rose $236,000 → $242,000, $6,000 (our arithmetic).
A coincidence hiding in the same release — the traditional IRA deduction phase-out for someone not covered by a workplace plan whose spouse is also runs $242,000–$252,000, identical to the Roth joint band. Cross that line and the Roth contribution and the traditional deduction disappear together. That the widths of the two bands reverse between filing statuses is in the traditional IRA deduction bands.
The order — why the match comes first
- 401(k) up to the full employer match. The match is money the employer adds to yours. The rate and the conditions live in your plan document, not in IRS rules.
- Fill the Roth IRA ($7,500). It is your own account, so the investment menu is open, and the withdrawal rules below favour it.
- Anything left, back to the 401(k) up to $24,500.
This ordering is conventional financial advice, not an IRS recommendation. No IRS document says what to fund first. What we verified against the source is only the limits, income tests and tax treatment.
The difference is when the tax lands
| Account | Going in | Coming out | Income limit |
|---|---|---|---|
| Pre-tax 401(k) | reduces taxable income | federal and state income tax | none |
| Roth 401(k) | after-tax dollars | untaxed if qualified | none |
| Roth IRA | after-tax dollars | untaxed if qualified | yes (table above) |
Everything turns on a “qualified distribution.” The IRS comparison chart sets it as a five-year holding period plus one of age 59½, disability or death. Five years alone is not enough; nor is age alone.
If your income closes the Roth IRA, look at the Roth 401(k). The comparison chart records its income limit as “No limits.” Whether your plan offers a Roth option is the only question.
Two IRS pages disagree
While checking the figures we found two pages on the same IRS site saying different things.
| Point | Roth comparison chart | RMD FAQs |
|---|---|---|
| Page last updated | 3 September 2025 | 29 January 2026 |
| Age required distributions begin | “begin by age 72” | “when you reach age 73” |
| RMDs on a Roth 401(k) | shown as required | “not required until after the death of the account owner” |
| Contribution limits shown | 2024 figures ($23,000 / $7,000) | not applicable |
The comparison chart is the older page — four months behind, and still carrying 2024 dollar limits. Take the structure from it (pre-tax vs after-tax, the qualified-distribution test, whether an income limit exists) and take the numbers and the distribution age from the newer pages.
The two do agree that a Roth IRA has no required distributions during the owner's lifetime. The RMD page's wording: “Withdrawals from Roth IRAs and Designated Roth accounts (401(k) or 403(b)) are not required until after the death of the account owner.”
The Saver's Credit thresholds land exactly on the ratios
This credit goes to lower-income savers. Line the 2026 ceilings up and the design shows.
| Filing status | 2026 ceiling | Share of joint |
|---|---|---|
| Married filing jointly | $80,500 | 100% |
| Head of household | $60,375 | exactly 75% |
| Single / married separate | $40,250 | exactly 50% |
80,500 × 0.75 = 60,375 and 80,500 ÷ 2 = 40,250 — no rounding (our arithmetic). Which makes the Roth IRA threshold, sitting at 1.58 rather than 2, look deliberate rather than accidental. Different items in the same release are built to different rules.
Questions that remain
Can I fund a 401(k) and an IRA in the same year?
The limits are separate. But if you are covered by a workplace plan, the traditional IRA deduction phases out — $81,000–$91,000 single, $129,000–$149,000 joint where the contributor is covered. The contribution is not blocked; the deduction shrinks.
Does the IRS set employer match rates and vesting?
Not the rates — but yes, the outer limit on vesting. On matching, the IRS writes only that “If the plan document permits, the employer can make matching contributions” — the condition comes first. Vesting schedules are likewise “determined by the plan document,” and can run from immediate vesting upward.
What a plan cannot do is stretch it indefinitely. The IRS describes 3-year cliff and 6-year graded as “the longest time periods, or most restrictive vesting rules, a plan can use” to meet the IRC 411(a)(2)(B) minimum vesting standards. So there is no match that locks you in beyond six years. Your own terms are in the Summary Plan Description.
What is the deadline for an IRA contribution?
Next year's filing deadline — and extensions do not move it. Publication 590-A: “Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions.” The Form 8606 instructions give the date itself: “The due date for making contributions for 2025 to your IRA for most people is Wednesday, April 15, 2026.”
Filing an extension does not extend the IRA deadline. That is what “not including extensions” means — even with an October extension, IRA contributions close on 15 April. The limits page's “(including extensions)” refers to withdrawing an excess contribution, a different thing entirely.
Practically: between January and 15 April you can fund two years at once — last year's and this year's. You have to designate which year when you contribute, so check that on the account.
What if my spouse has no earnings?
The source answers directly: “Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can't be more than the taxable compensation reported on your joint return.”
What if the limit is higher than what I earned?
Then earnings are the ceiling. The wording is “or If less, your taxable compensation for the year.”
Is “backdoor Roth” an IRS term?
No. We could not find the phrase anywhere on irs.gov — not in the Form 8606 instructions, not on the Roth IRA page. It is a name the industry gave it.
The two underlying steps are each documented, though. First, being over the deduction limit does not block the contribution: “Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit” (Pub 590-A). Second, nondeductible contributions and Roth conversions are reported on the same form, Form 8606. We do not cover the tax due on conversion or the pro-rata rule here — check those with a tax professional.
What about state income tax?
Every figure here is federal. The IRS says so itself: “This notice does not address any State or local income tax rules (including withholding rules)” (Notice 2020-62). State treatment has to come from your state's revenue department.
How often do these limits change?
Annually. The IRS writes that “IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.” Which is why old articles almost always quote stale limits — and as the section below shows, even some IRS pages lag. Take numbers from the most recent page that carries a year.
Where do I start with US tax basics?
Bracket structure is in the federal income tax brackets, take-home pay in the paycheck calculator, investment gains in US capital gains tax, and medical accounts in HSA vs FSA.
Sources
- IRS — primary source — “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500” (IR-2025-111, 13 November 2025, citing Notice 2025-67). Source for the $24,500 deferral limit, $8,000 and $11,250 catch-ups, the $7,500 IRA limit and $1,100 catch-up, all three Roth IRA phase-out ranges, all four traditional IRA deduction ranges, the three Saver's Credit ceilings, and the 2025 comparatives.
- IRS — primary source — “Retirement topics — 401(k) and profit-sharing plan contribution limits” (updated 8 April 2026). Source for the $72,000 / $80,000 / $83,250 overall limits, the $360,000 compensation limit, and the 60–63 catch-up.
- IRS — primary source — “Retirement topics — IRA contribution limits” (updated 3 March 2026). Source for the combined traditional-and-Roth limit, the spousal rule, and the “if less, your taxable compensation” wording.
- IRS — primary source — “Retirement plan and IRA required minimum distributions FAQs” (updated 29 January 2026). Source for age 73 and for Roth accounts being exempt during the owner's lifetime.
- IRS — primary source — “Roth comparison chart” (updated 3 September 2025). Source for the after-tax structure, the five-year-plus-59½ qualified distribution test, and “No limits” on the Roth 401(k) — and one side of the contradiction above.
- Our own arithmetic — the 3.27 ratio, $32,500 / $35,750 / $8,600, the $80,000 and $83,250 reconciliation, the $15,000 and $10,000 band widths, the 1.58 threshold ratio, the $3,000 and $6,000 increases, and the 75% / 50% Saver's Credit ratios.
- IRS Publication 590-A — Contributions to Individual Retirement Arrangements (IRAs) (checked August 2026). Source for “at any time during the year or by the due date for filing your return for that year, not including extensions,” and for nondeductible contributions remaining possible above the deduction limit.
- IRS Form 8606 Instructions — Instructions for Form 8606 (checked August 2026). Source for “The due date for making contributions for 2025 to your IRA for most people is Wednesday, April 15, 2026,” and for nondeductible contributions and conversions being reported on the same form.
- IRS Issue Snapshot — Vesting schedules for matching contributions — IRS (checked August 2026). Source for 3-year cliff and 6-year graded as “the longest time periods, or most restrictive vesting rules, a plan can use” under IRC 411(a)(2)(B).
- IRS Retirement topics — Vesting / 401(k) Plan Overview — IRS (checked August 2026). Source for “determined by the plan document” and “If the plan document permits, the employer can make matching contributions.”
- IRS COLA increases for dollar limitations — IRS (checked August 2026). Source for “IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.”
- IRS Notice 2020-62 — 402(f) Safe Harbor Explanations. Source for “This notice does not address any State or local income tax rules (including withholding rules).”
Where to check further
- Your plan's match rate and vesting schedule. The IRS sets only the outer limit; the actual terms come from the plan document. Get the Summary Plan Description and read the “employer contributions” and “vesting” sections — that is where the percentage, and how long before the money is yours, are decided.
- Your state's treatment. “Federal and state income taxes” above is the comparison chart's own phrasing; state-by-state differences are outside this article. Some states do not tax retirement income at all — check with your state's revenue department.
- Before actually doing a Roth conversion. Nondeductible contributions and conversions are reported on Form 8606, but the taxable amount and the pro-rata rule depend on your other IRA balances. Run the numbers with a tax professional first.
SIMPLE 401(k) figures ($17,000, +$4,000 at 50+, $5,250 at 60–63) are left out of the body as too narrow a case. The usual order is match → Roth IRA → max the 401(k) — but start by working out which income band you are in, because the Roth IRA goes to zero across a $10,000 stretch.
As of July 2026 (IRS pages updated between 3 Sep 2025 and 8 Apr 2026). Limits, income tests and tax treatment are the IRS pages verbatim; ratios, band widths and the reconciliations are ours. This is not investment or tax advice — check your own position against your plan document and a tax professional. Broader retirement planning is in preparing for retirement by decade.
