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2026 Retirement Contribution Limits: What NY Savers Need to Know

Tax TeamAugust 11, 20266 min read
2026 Retirement Contribution Limits: What NY Savers Need to Know — editorial illustration

The 2026 Limits (IRS IR-2025-111 / Notice 2025-67)

The IRS raised most retirement contribution limits for 2026. Every dollar you contribute to a traditional account reduces your federal, NY State, and NYC taxable income — a triple discount that makes maxing out unusually valuable in New York.

Account2026 LimitNotes
401(k) / 403(b) / 457(b)
**$24,500**
Up from $23,500
401(k) catch-up (50-59)
+**$8,000**
Total $32,500
401(k) catch-up (60-63, eligible plans)
+**$11,250**
Total $35,750
Total 401(k) incl. employer
**$72,000**
$80,000 with catch-up
Traditional / Roth IRA
**$7,500**
$8,600 if 50+
HSA (self / family)
**$4,400 / $8,750**
+$1,000 catch-up at 55+
SEP-IRA
**$72,000**
25% of net earnings
SIMPLE IRA
**$17,000**
+$4,000 catch-up

The Triple Tax Discount in NY

A traditional 401(k) contribution avoids federal tax, NY State tax, and NYC tax (for city residents). For an NYC filer in the 22% federal / 5.9% state / 3.88% city brackets, each $1,000 contributed saves about $318 in current taxes. Maxing a 401(k) at $24,500 saves roughly $7,800 per year — before any employer match.

Roth IRA Phase-Outs (2026)

Roth IRA eligibility phases out at higher incomes for 2026:

Filing StatusPhase-Out Range
Single / head of household
$165,000 – $175,000
Married filing jointly
$242,000 – $252,000

If you are over the phase-out, the backdoor Roth IRA (contribute to a traditional IRA, then convert) remains available — see our high-income strategies guide.

The HSA Is the Best Deal in NY

An HSA is deductible at contribution (federal + NY + NYC), grows tax-free, and withdraws tax-free for qualified medical costs — the only triple-tax-advantaged account. For a family, the 2026 limit is $8,750 (+$1,000 at 55+). If you have a high-deductible health plan, max the HSA before the IRA.

NY-Specific Moves

  • 529 plan: NY gives a state tax deduction of up to $5,000 ($10,000 MFJ) for NY 529 contributions — worth $270–$685 per year depending on your bracket (see our [529 guide](/blog/529-plan-ny-benefits))
  • Government pensions: NY public employees can also use the 457(b) limit; the $24,500 limit applies
  • Self-employed? SEP-IRA at $72,000 is the biggest room available — see our [freelancer guide](/blog/self-employment-ny-taxes)

    • Action Plan

  • Max the 401(k) match first — free money
  • Fund the HSA to the family limit if eligible
  • Top up the IRA ($7,500, or $8,600 if 50+)
  • Bump the 401(k) toward $24,500 — the NY triple discount makes it worth more here than almost anywhere else
  • Model the take-home impact in the [calculator](/) — it includes 401(k) and HSA adjustments in the W-4 mode

    • Written by Tax Team

    The NY Tax Calculator editorial team researches every article against official IRS, New York State Department of Taxation and Finance, and Social Security Administration publications. All figures are verified for tax year 2026.

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