Retirement Account Rules and Limits by Account Type
This page provides a structured reference for major U.S. retirement account types. Each section follows the same format so accounts are easy to compare. Limits and laws change over time. Verify current IRS figures and rules each year.
Pre-tax Employer-Sponsored Plans
401(k)
Who it’s for
Employees of private-sector companies that offer a plan.
Tax treatment
Pre-tax contributions. Growth is tax-deferred. Withdrawals are taxed as income.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
Withdrawals before age 59½ usually trigger income tax plus 10% penalty.
Special provisions
Plan loans may be available.
Rule of 55 allows penalty-free withdrawals after separation at age 55+ (plan dependent).
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
Required starting at current RMD age unless still working and plan allows delay. Pre-tax balances subject to RMD.
403(b)
Who it’s for
Employees of schools, nonprofits, and certain public organizations.
Tax treatment
Pre-tax contributions. Tax-deferred growth. Taxed at withdrawal.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
Same early withdrawal penalty structure as 401(k).
Special provisions
Some plans allow long-service catch-up contributions.
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
Same as other pre-tax employer plans.
457(b)
Who it’s for
Government and some nonprofit employees.
Tax treatment
Pre-tax contributions. Tax-deferred growth. Taxed at withdrawal.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
No 10% early withdrawal penalty after separation from service. Income tax still applies.
Special provisions
Special 3-year catch-up window near normal retirement age (plan defined).
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
Apply to pre-tax balances.
Individual Retirement Accounts
Traditional IRA
Who it’s for
Individuals with earned income. No employer required.
Tax treatment
Contributions may be deductible. Growth tax-deferred. Withdrawals taxed as income.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
Withdrawals before age 59½ usually trigger tax plus 10% penalty unless exception applies.
Special provisions
Tax deductions phase out at higher incomes if covered by employer plan.
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
Required beginning at current RMD age.
SEP-IRA
Who it’s for
Self-employed individuals and small business owners.
Tax treatment
Employer contributions are pre-tax. Growth tax-deferred. Withdrawals taxed as income.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
Early withdrawal penalty rules match Traditional IRA.
Special provisions
Employer-only contributions. No employee deferrals.
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
Apply.
SIMPLE IRA
Who it’s for
Employees of small businesses with SIMPLE plans.
Tax treatment
Pre-tax contributions. Tax-deferred growth. Taxed at withdrawal.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
Early withdrawals within first 2 years trigger 25% penalty. After that, standard 10% rule applies.
Special provisions
Employer must contribute via match or fixed percentage.
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
Apply.
Roth Employer Plans
Covers Roth 401(k), Roth 403(b), and Roth 457(b).
Who it’s for
Employees whose employer plan offers a Roth option.
Tax treatment
After-tax contributions. Qualified withdrawals are tax-free.
Contribution limits
IRS sets annual limits. See current limits table below.
Withdrawal rules
Tax-free if age 59½+ and 5-year rule satisfied. Otherwise earnings may be taxed and penalized.
Special provisions
Employer contributions always go to pre-tax side, not Roth side.
Catch-up contributions
IRS sets annual limits. See current limits table below.
RMD rules
RMDs apply while funds remain in employer plan. Can avoid by rolling into Roth IRA.
Required Minimum Distribution (RMD)
A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from certain retirement accounts after you reach a specified age. RMD withdrawals are generally taxed as ordinary income.
You must take at least the required amount each year once you reach the RMD starting age. Failing to take an RMD can trigger a tax penalty.
Current starting age
73. Scheduled to increase to age 75 for individuals who turn 73 in 2033 or later under current law.
Accounts subject to RMD
- Traditional IRA
- SEP IRA
- SIMPLE IRA
- Pre-tax 401(k)
- Pre-tax 403(b)
- Pre-tax 457(b)
- Roth 401(k)
- Roth 403(b)
- Roth 457(b)
Accounts not subject to RMD
- Roth IRA
Annual Retirement Contribution Limits — 2026
Contribution limits change periodically. This table summarizes current annual caps for major retirement account types and is simplified for reference. Always confirm details with IRS guidance and your plan provider.
| Account Type | Employee Contribution Limit | Catch-Up (Age 50+/60-63) | Employer Contribution Rule | Combined Annual Cap | Notes |
| 401(k) | $24,500 | $8,000/$11,250 | Allowed, counts toward combined cap | $72,000 | Catch-up contributions are Roth only for earners above $150,000 |
| 403(b) | $24,500 | $8,000/$11,250 | Allowed, counts toward combined cap | $72,000 | Catch-up contributions are Roth only for earners above $150,000 |
| 457(b) | $24,500 | $8,000/$11,250 | Allowed, counts toward combined cap | $72,000 | Separate from 401k/403b limit. Catch-up contributions are Roth only for earners above $150,000 |
| Traditional IRA | $7,500 | $1,100 | Not Allowed | Combined, shared limit with Roth IRA. Income phase-outs for tax deductions apply. | |
| Roth IRA | $7,500 | $1,100 | Not Allowed | Combined, shared limit with Trad IRA. Income phase-outs for allowed contributions apply. Backdoor Roth exception. | |
| SEP-IRA | $7,500 | $1,100 | 25% of compensation | $72,000 | Max $72,000. Employee contributions are plan dependent, and counted towards IRA contribution limits. |
| SIMPLE IRA | $17,000 | $4,000/$5,250 | Required match or % | Employment dependent | Employer contribution required. Companies <=25 people have different rules. |
| Roth employer variants | Same as non-Roth version | Same as non-Roth version | Same as non-Roth version | Same as non-Roth version | Combined, shared limit with non-Roth version |