Quick Reference

Retirement Account Comparison

Compare Traditional IRA, Roth IRA, 401(k), 403(b), 457(b), SEP IRA, SIMPLE IRA, and Solo 401(k) Ã¢â‚¬â€ 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. Starting in 2026, employees earning over $150,000 in FICA wages must make catch-up contributions as Roth.

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. If you have access to both a 403(b) and a govt 457(b), you can max out both — up to $49,000 in employee deferrals for 2026 (or more with catch-up).

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 election. Starting in 2026, employees earning over $150,000 must make catch-up contributions as Roth.

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.

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.