United States · IRS retirement limits · Tax year 2026
SIMPLE IRA contribution limits, 2026.
The 2026 employee deferral limits, catch-ups and employer contributions for a SIMPLE IRA, with a calculator for your own numbers.
The 2026 SIMPLE IRA employee limit is $17,000, or $18,100 where the higher limit applies. Add a $4,000 catch-up at 50 or older ($3,850 under the higher limit), or $5,250 at ages 60 to 63. The employer adds a 3% match or 2% nonelective contribution on top.
Check your limit
Result
The 2026 limits at a glance
| Item | 2025 | 2026 | Source |
|---|---|---|---|
| Employee deferral limit | $16,500 | $17,000 | Notice 2025-67 |
| Higher limit (25 or fewer employees, or 26 to 100 with 4% match or 3% nonelective) | $17,600 | $18,100 | Notice 2025-67 |
| Catch-up, age 50 or older | $3,500 | $4,000 | Notice 2025-67 |
| Catch-up, age 50 or older, higher-limit plans | $3,850 | $3,850 | Notice 2025-67 |
| Catch-up, ages 60 to 63 | $5,250 | $5,250 | Notice 2025-67 |
| Additional nonelective contribution cap (lesser of 10% of pay or) | $5,100 | $5,300 | Notice 2025-67 |
| Pay counted for a 2% nonelective contribution | $350,000 | $360,000 | Notice 2025-67; IRS SIMPLE IRA limits page |
| Combined salary deferrals across employer plans | $23,500 | $24,500 | Notice 2025-67 (section 402(g)); IRS SIMPLE IRA limits page |
The 2025 column is the figure Notice 2025-67 says it replaced. The notice states the catch-up for the higher-limit plans as remaining at $3,850 and the 60 to 63 catch-up as remaining at $5,250.
How the calculator works
Age sets the catch-up: none under 50, $4,000 from 50 (or $3,850 if the higher limit applies), $5,250 for 60 through 63, and the ordinary age-50 catch-up again from 64. Employer size decides the base limit. A plan at an employer with 25 or fewer employees uses $18,100. At 26 to 100 employees the page asks whether the employer gives a 4% match or 3% nonelective contribution, because only then does $18,100 apply. Pay caps what you can defer, since you cannot defer more than you earn. Planned deferral is compared with the limit, and blank means the maximum. Employer method adds the match (your deferral up to 3% of pay) or the 2% nonelective on pay up to $360,000.
Worked examples (hypothetical)
- Age 52, 20-employee company, $80,000 pay, maximum deferral, 3% match. Limit $18,100 + $3,850 = $21,950. The match is 3% of $80,000 = $2,400. Total going in: $24,350.
- Age 61, 60-employee company with no 4% match or 3% nonelective, $50,000 pay, tries to defer $30,000, 2% nonelective. Limit $17,000 + $5,250 = $22,250, so the $30,000 is capped at $22,250. The nonelective contribution is 2% of $50,000 = $1,000. Total $23,250.
- Age 35, 20-employee company, $60,000 pay, defers $12,000, 3% match. Limit $18,100, so $6,100 of deferral room is left. The match is 3% of $60,000 = $1,800 and the total going in is $13,800.
Common mistakes and edge cases
- Adding employer money to the employee limit. They are separate, so a worker can have more than $17,000 going in.
- Using the 401(k) number. The 2026 401(k) deferral limit is $24,500, much higher than a SIMPLE IRA's $17,000. If you are in two plans, your deferrals across them are capped together.
- Applying the 2% nonelective rule to a match. The IRS page counts pay up to $360,000 for the nonelective contribution and states no such cap for the match.
- Forgetting the two-year rule. The IRS says withdrawals in the first two years of participation face a 25% additional tax rather than 10%.
- Missing eligibility. A worker generally qualifies after earning at least $5,000 in any two earlier years and expecting $5,000 this year.
- Assuming the 60 to 63 catch-up replaces the higher limit. It is a catch-up amount, added to the base limit.
Who this is for, and what it does not cover
This page is for employees checking how much they can put in, and owners of businesses with 100 or fewer employees who offer a SIMPLE IRA and no other plan. It does not model the Roth SIMPLE option, plans with more than 100 employees, a sole proprietor's own net earnings, deposit timing or tax deductions. A self-employed owner with no employees may find the solo 401(k) and SEP IRA calculator a better fit, and the 401(k) contribution limit calculator covers larger employer plans.
Frequently asked questions
What is the SIMPLE IRA contribution limit for 2026?
$17,000 in salary deferrals for most employees, up from $16,500 in 2025. Employees aged 50 or older can add a $4,000 catch-up, and those aged 60 to 63 can add $5,250 instead. Employer contributions are on top of these limits.
What is the higher $18,100 SIMPLE IRA limit and who gets it?
IRS says the higher 2026 limit of $18,100 applies to employers with 25 or fewer employees. An employer with 26 to 100 employees can use it by making a 4% matching contribution or a 3% nonelective contribution. The limit was $17,600 in 2025.
What is the SIMPLE IRA catch-up limit for 2026?
$4,000 for age 50 or older, up from $3,500. Where the higher limit applies, the age-50 catch-up is $3,850 instead. For ages 60, 61, 62 and 63 the catch-up is $5,250.
How much can my employer contribute to my SIMPLE IRA?
Either a dollar-for-dollar match up to 3% of your pay (the employer may lower it to as little as 1% in no more than 2 of 5 years), or a 2% nonelective contribution on pay up to $360,000, which is paid whether or not you defer. An additional nonelective contribution of up to the lesser of 10% of pay or $5,300 is possible under Notice 2025-67.
Do employer contributions count toward the $17,000 limit?
No. The $17,000, $18,100 and catch-up figures limit your own salary deferrals. Matching and nonelective contributions are separate.
Can I contribute to a SIMPLE IRA and a 401(k) in the same year?
Your salary deferrals across a SIMPLE IRA and other employer plans together are capped at $24,500 for 2026, per the IRS. An employer that offers a SIMPLE IRA generally cannot also sponsor another retirement plan.
When do SIMPLE IRA contributions have to be deposited?
Employee deferrals must be deposited within 30 days after the end of the month in which they would have been paid in cash. Employer match or nonelective contributions are due by the employer's tax return due date, including extensions.
Is there a 2027 SIMPLE IRA limit yet?
Not on the IRS pages checked October 20, 2026. The 2026 limits were set in Notice 2025-67, and the IRS announced the 2026 limits in news release IR-2025-111 (late 2025), so 2027 figures normally arrive in the fall.
Sources
Retrieved October 20, 2026. Each link returned HTTP 200. The figures come from Notice 2025-67 and the two IRS SIMPLE IRA pages, and the IRS news release repeats the headline numbers.
- IRS Notice 2025-67, 2026 amounts relating to retirement plans and IRAs (sections 408(p), 414(v), 401(a)(17))
- IRS, Retirement topics: SIMPLE IRA contribution limits (last reviewed March 6, 2026)
- IRS, SIMPLE IRA Plan (last reviewed April 2, 2026): higher limit, eligibility, two-year rule
- IRS news release IR-2025-111, 401(k) limit increases to $24,500 for 2026 (confirms the SIMPLE figures)
Reference, not tax advice
Figures come from the IRS documents linked above and are applied in your browser. Your plan document sets what your employer actually offers. This is not tax or investment advice.