Quick Reference

Retirement Account Comparison

Compare Traditional IRA, Roth IRA, 401(k), 403(b), 457(b), SEP IRA, SIMPLE IRA, and Solo 401(k) — contribution limits, tax treatment, and features for 2026.

Last Updated: Feb 2026

Key Numbers

IRA Limit

$7,500 ($8,600 50+)

401(k) Limit

$24,500 ($32,500 50+)

Solo 401(k) Max

$72,000

Roth Phaseout

$153K (Single)

The right retirement account depends on your employment situation, income level, and tax strategy. This reference covers all major account types with 2026 contribution limits, tax treatment, and key features.

At-a-Glance Comparison

Account	2026 Limit	Tax Treatment	RMDs?	Best For
Traditional IRA	$7,500	Pre-tax*	Yes (73)	Higher bracket now
Roth IRA	$7,500	After-tax	No	Lower bracket now
401(k)	$24,500	Pre-tax / Roth	Trad: Yes; Roth: No	Employer match
403(b)	$24,500	Pre-tax / Roth	Yes (73)	Nonprofits, education
457(b)	$24,500	Pre-tax / Roth	Yes (73)	Government, double-dipping
SEP IRA	$72,000	Pre-tax†	Yes (73)	Self-employed, high income
SIMPLE IRA	$17,000	Pre-tax†	Yes (73)	Small employers (≤100)
Solo 401(k)	$72,000	Pre-tax / Roth	Yes (73)	Self-employed, max savings

* Traditional IRA deduction may be limited if covered by an employer plan. † SECURE 2.0 permits Roth contributions for SEP and SIMPLE IRAs if the plan allows it; availability varies by provider. Roth 401(k) RMD exemption effective 2024 under SECURE 2.0.

2026 Catch-Up Contributions

Account	Base Limit	Catch-Up (50+)	Super (60–63)	Max Total
IRA (Trad / Roth)	$7,500	+$1,100	—	$8,600
401(k) / 403(b) / 457(b)	$24,500	+$8,000	+$11,250	$35,750*
SIMPLE IRA	$17,000	+$4,000	+$5,250	$22,250*

* Max shown uses super catch-up (ages 60–63). Ages 50–59 and 64+ use standard catch-up.

New 2026 — Mandatory Roth catch-up for high earners: Starting in 2026, employees age 50+ whose prior-year FICA wages from the same employer exceeded $150,000 must make all catch-up contributions to a Roth account. There is no current-year tax deduction on these dollars. If your plan does not offer a Roth option, you may be unable to make catch-up contributions at all. This applies to 401(k), 403(b), and governmental 457(b) plans.

Traditional (Pre-Tax)

Contributions reduce taxable income now. Growth is tax-deferred. Withdrawals are taxed as ordinary income in retirement.

Roth (After-Tax)

Contributions use after-tax dollars (no deduction). Growth and qualified withdrawals are completely tax-free.

Traditional & Roth IRAs

Individual Retirement Accounts are personal accounts you open yourself, independent of any employer. The two main types differ in tax treatment, income limits, and withdrawal rules.

Traditional IRA vs. Roth IRA

Feature	Traditional IRA	Roth IRA
2026 Limit	$7,500 ($8,600 if 50+)	$7,500 ($8,600 if 50+)
Tax on Contributions	Deductible*	Not deductible
Tax on Growth	Tax-deferred	Tax-free
Tax on Withdrawals	Taxed as ordinary income	Tax-free (if qualified)
Income Limits	None to contribute	Yes (see below)
RMDs	Yes, at 73	No
Early Withdrawal	10% penalty + tax before 59½	Contributions anytime; 10% on earnings before 59½

* Deduction may be reduced or eliminated if you (or spouse) are covered by an employer plan and income exceeds the phase-out thresholds below.

2026 Roth IRA Income Limits (MAGI)

Filing Status	Full Contribution	Phase-Out Range	No Contribution
Single / HoH	< $153,000	$153,000 – $168,000	≥ $168,000
Married Filing Jointly	< $242,000	$242,000 – $252,000	≥ $252,000
Married Filing Separately	$0	$0 – $10,000	≥ $10,000

2026 Traditional IRA Deduction Phase-Outs (MAGI)

Situation	Phase-Out Range
Single, covered by employer plan	$81,000 – $91,000
MFJ, contributor covered by employer plan	$129,000 – $149,000
MFJ, contributor NOT covered but spouse IS	$242,000 – $252,000
Married filing separately, covered by plan	$0 – $10,000

Backdoor Roth IRA: If your income exceeds Roth IRA limits, you can contribute to a non-deductible Traditional IRA and convert to Roth. No income limit applies, but beware the pro-rata rule if you hold pre-tax IRA funds.

Employer Plans

Employer-sponsored plans — 401(k), 403(b), and 457(b) — share the same $24,500 deferral limit but differ in eligibility, employer matching, and withdrawal rules.

401(k) vs. 403(b) vs. 457(b)

Feature	401(k)	403(b)	457(b)
Offered By	For-profit companies	Nonprofits, schools, hospitals	Government, some nonprofits
2026 Deferral Limit	$24,500	$24,500	$24,500
Total Limit (+ employer)	$72,000	$72,000	Employee only*
Roth Option	Yes (if offered)	Yes (if offered)	Yes (if offered)
Employer Match	Common	Sometimes	Rare
10% Early Penalty?	Yes (before 59½)	Yes (before 59½)	No (govt 457b)**
Separate Limit?	No	No (shares with 401k)	Yes — can double-dip

* 457(b) plans typically don't include employer contributions toward the limit. ** Government 457(b) plans have no 10% early withdrawal penalty; tax-exempt org 457(b) plans do.

457(b) double-dipping: The 457(b) has its own separate annual limit — completely independent of any 401(k) or 403(b) limit. If you work for a government employer and have access to both a 403(b) and a governmental 457(b), you can max out both simultaneously — up to $49,000 in employee deferrals for 2026 ($24,500 × 2), or up to $71,500 with super catch-up (ages 60–63). This is one of the most powerful tax-advantaged savings strategies available to public school teachers, nurses, and government employees.

Traditional vs. Roth 401(k)

Feature	Traditional 401(k)	Roth 401(k)
Contribution Limit	$24,500 (shared)	$24,500 (shared)
Income Limits	None	None
Tax on Contributions	Pre-tax (reduces taxable income)	After-tax (no deduction)
Tax on Withdrawals	Fully taxed	Tax-free (if qualified)
RMDs	Yes (age 73)	No (as of 2024)
Employer Match	Goes to Traditional	Goes to Traditional*

* Employer matching contributions are always pre-tax, regardless of your Roth election. See the mandatory Roth catch-up rule above for high earners age 50+ in 2026.

Rule of 55: If you leave your job in the year you turn 55 or later, you can withdraw from that employer's 401(k)/403(b) without the 10% penalty. Does not apply to IRAs or previous employers' plans.

Self-Employed Plans

Self-employed individuals and small business owners have three main plan options, each with different contribution structures, flexibility, and administrative requirements.

SEP IRA vs. SIMPLE IRA vs. Solo 401(k)

Feature	SEP IRA	SIMPLE IRA	Solo 401(k)
Best For	Self-employed, high income	Small biz (≤100 employees)	Self-employed, no employees
2026 Max	$72,000	$17,000 + match	$72,000
Contribution Type	Employer only (25% of comp)	Employee + employer	Employee + employer
Catch-Up (50+)	None	+$4,000	+$8,000
Super Catch-Up (60–63)	None	+$5,250	+$11,250
Roth Option	If offered*	If offered*	Yes
Loans	No	No	Yes
Can Have Employees?	Yes (must cover all)	Yes (≤100)	No (except spouse)
Setup Complexity	Very easy	Easy	Moderate
Filing	None	None	5500-EZ if >$250K

* SECURE 2.0 permits Roth contributions for SEP and SIMPLE IRAs starting in 2023, but not all providers support it yet. Employer with ≤25 employees may qualify for higher SIMPLE limits ($18,100 base / $3,850 catch-up) under SECURE 2.0.

Solo 401(k) & SEP IRA Contribution Structure

Component	Solo 401(k)	SEP IRA
Employee Deferral	$24,500 (Traditional or Roth)	N/A — employer-only
Employer Contribution	Up to 25% of net SE income	Up to 25% of comp (~20% net SE*)
2026 Combined Max	$72,000	$72,000
With Catch-Up (50+ / 60–63)	$80,000 / $83,250	No catch-up available

* Self-employed SEP formula: (Net SE Income − ½ SE Tax) × 0.25 ÷ 1.25. Effective rate ≈ 18.59% of net SE income.

SIMPLE IRA Match: Option 1

Dollar-for-dollar match up to 3% of compensation. Can reduce to 1% for 2 of any 5 years.

SIMPLE IRA Match: Option 2

Non-elective 2% of each eligible employee's compensation, regardless of whether the employee contributes.

SIMPLE IRA 25% penalty: Withdrawals within the first 2 years of participation incur a 25% early withdrawal penalty (vs. the usual 10%). After 2 years, the standard 10% penalty applies before age 59½.

Which Account Should I Use?

There is no single right answer — the best account depends on your employment situation, income, and current vs. expected future tax bracket. These scenarios cover the most common decision points.

Your situation	Start here	Why
Employer offers a 401(k) with a match	401(k) up to the match	The match is an instant 50–100% return on your contribution — always capture it first.
You expect a higher tax bracket in retirement	Roth IRA or Roth 401(k)	Pay tax now at the lower rate; qualified withdrawals are completely tax-free.
You expect a lower tax bracket in retirement	Traditional IRA or 401(k)	Deduct contributions now at the higher rate; pay tax on withdrawals later at the lower rate.
Income is over the Roth IRA limit ($168K single / $252K MFJ)	Backdoor Roth IRA	Contribute to a non-deductible Traditional IRA then convert. No income limit applies to conversions.
You're self-employed with no employees	Solo 401(k)	Contributes as both employer and employee, reaching the $72,000 limit faster than a SEP IRA at lower income levels. Adds Roth option and loans.
You're self-employed with employees	SEP IRA or SIMPLE IRA	SEP IRA if you want to maximize employer contributions; SIMPLE IRA if you want employees to contribute their own money too (≤100 employees).
You work for a government or nonprofit and have access to both a 403(b) and a 457(b)	Max out both	The 457(b) limit is fully separate from the 403(b) limit. You can contribute up to $49,000 total in 2026 — a rare double-dipping opportunity.
You've already maxed your 401(k) and want more tax-advantaged space	IRA (Traditional or Roth)	The IRA limit ($7,500) is independent of your workplace plan limit. You can max both in the same year.
You want to avoid required minimum distributions	Roth IRA	Roth IRAs have no RMDs during the account holder's lifetime. Roth 401(k)s are also RMD-free as of 2024 under SECURE 2.0.
You're 50+ and want to maximize savings in the final stretch	401(k) + IRA catch-up; ages 60–63: super catch-up	The super catch-up (ages 60–63) raises your 401(k) limit to $35,750 in 2026. Add an IRA catch-up ($8,600) for a combined $44,350 in tax-advantaged space.

The recommended order

1. 401(k) up to employer match
2. Max HSA (if eligible)
3. Max Roth or Traditional IRA ($7,500)
4. Max remaining 401(k) space ($24,500 total)
5. Taxable brokerage (no contribution limit)

Can I contribute to multiple accounts?

Yes. IRA limits are separate from 401(k)/403(b)/457(b) limits. A government employee can simultaneously contribute to a 401(k), a 457(b), and a Roth IRA — three separate annual limits. The only constraint is that all Traditional + Roth IRA contributions across all IRA accounts share the single $7,500 annual limit.

Sources

This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.