SIMPLE IRA Contribution Limits 2026 and 2027
For 2026, an employee can defer up to $17,000 into a SIMPLE IRA, or $18,100 under the higher limit the IRS describes for certain plans, plus a $4,000 catch-up at age 50 or older. The IRS had not published its 2027 limits when we checked on November 1, 2026, so the 2027 figures on this page are computed from the statute and inflation data, not official: $17,500 standard deferral, $19,100 higher limit and $4,000 catch-up.
Maintained by Archie Chang · Reviewed November 1, 2026 · Methodology & sources
Status: 2026 is official; 2027 is computed, not official. When we checked on November 1, 2026, the IRS had not published its 2027 limits. The 2027 figures are our computation from the statute and inflation data, with the method and back-test on the 401(k) contribution limits 2027 page. They are replaced by the official amounts when the IRS notice is added to our data.
Not affiliated with the IRS; this is general information, not tax advice.
SIMPLE IRA limits: 2026 and 2027
| Limit | 2026 | 2027 | 2027 status |
|---|---|---|---|
| Salary reduction (deferral) limit, standard | $17,000 | $17,500 | Computed, not official |
| Catch-up, age 50 or over, standard | $4,000 | $4,000 | Computed, not official |
| Deferral limit, higher (certain employers) | $18,100 | $19,100 | Computed, not official |
| Catch-up, age 50 or over, certain applicable plans | $3,850 | $3,850 | Computed, not official |
| Catch-up, age 60, 61, 62 or 63 | $5,250 | $5,250 | Computed, not official |
| Pay counted for the 2% nonelective contribution | $360,000 | $375,000 | Computed, not official |
Deferral limit by age and employer type
Each total is the deferral limit plus the catch-up, using the IRS amounts. A catch-up is allowed only if the plan permits it. The IRS has not said whether ages 60 to 63 get a larger catch-up in a higher-limit SIMPLE plan. The IRS lists the regular higher-limit catch-up for those plans, so the table shows it without a total; check with your plan.
| Age at year end | Employer limit | 2026 deferral | 2026 catch-up | 2026 total | 2027 total | 2027 status |
|---|---|---|---|---|---|---|
| Under 50 at year end | Standard SIMPLE IRA limit | $17,000 | — | $17,000 | $17,500 | Computed, not official |
| Under 50 at year end | Higher limit (employers with 25 or fewer employees, or 26 to 100 employees that elect it, per the IRS) | $18,100 | — | $18,100 | $19,100 | Computed, not official |
| Age 50 to 59, or 64 and older | Standard SIMPLE IRA limit | $17,000 | $4,000 | $21,000 | $21,500 | Computed, not official |
| Age 50 to 59, or 64 and older | Higher limit (employers with 25 or fewer employees, or 26 to 100 employees that elect it, per the IRS) | $18,100 | $3,850 | $21,950 | $22,950 | Computed, not official |
| Age 60, 61, 62 or 63 | Standard SIMPLE IRA limit | $17,000 | $5,250 | $22,250 | $22,750 | Computed, not official |
| Age 60, 61, 62 or 63 | Higher limit (employers with 25 or fewer employees, or 26 to 100 employees that elect it, per the IRS) | $18,100 | $3,850 | Not stated by the IRS | Not stated by the IRS | — |
The salary reduction limit
“The amount an employee contributes from their salary to a SIMPLE IRA cannot exceed $17,000 in 2026, subject to cost-of-living adjustments.
If an employee participates in any other employer plan during the year and has elective salary reductions under those plans, the total amount of the salary reduction contributions that an employee can make to all the plans he or she participates in is limited to $24,500 in 2026, subject to cost-of-living adjustments. See more than one plan.”
That shared limit is the same one that applies to a 401(k): see 401(k) contribution limits and the 2027 page.
The higher limit for certain employers
The IRS describes the higher limit in these places, and the wording differs, so check which one your plan uses:
“The amount individuals can generally contribute to their SIMPLE retirement accounts is increased to $17,000, up from $16,500 for 2025. Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is increased to $18,100, up from $17,600 for 2025.”
“The limitation for certain of those accounts or plans under section 408(p)(2)(E)(i)(I) or (II) is increased from $17,600 to $18,100.”
“Pursuant to Secure Act 2.0, employers of 26 to 100 employees can make a 4% matching contribution if the higher 2026 employee contribution limit of $18,100 for employers with 25 or fewer employees is applicable.”
“Pursuant to section 117 of the SECURE 2.0 Act of 2022, higher matching contributions apply for certain employers who elect to allow higher salary reduction contributions.”
“The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is increased to $4,000, up from $3,500 for 2025. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans, which remains $5,250.”
Catch-up contributions
“Catch-up contributions. If permitted by the SIMPLE IRA plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The catch-up contribution limit for SIMPLE IRA plans is $4,000 in 2026.
Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62, or 63 who participate in SIMPLE plans. For 2026, this higher catch-up contribution limit is $5,250.
These amounts are subject to cost-of-living adjustments.”
For the Roth catch-up rules and the 401(k) amounts, see Roth IRA contribution limits 2027 and the solo 401(k) calculator.
What the employer contributes
“The employer is generally required to match each employee's salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee's compensation. This requirement does not apply if the employer makes nonelective contributions instead.”
“An employer may choose to make a matching contribution less than 3%, but it must be at least 1% and for no more than 2 out of 5 years.”
“Instead of matching contributions, an employer can choose to make nonelective contributions of 2% of each eligible employee’s compensation. If the employer makes this choice, it must make nonelective contributions whether or not the employee chooses to make salary reduction contributions. An employee's compensation up to $360,000 for 2026 (subject to cost-of-living adjustments) is taken into account to figure the contribution limit.
If the employer chooses this 2% contribution formula, it must notify the employees within a reasonable period before the 60-day election period for the calendar year.”
“Employer cannot have any other retirement plan”
SIMPLE IRA limits by year, 2018 to 2026
| Year | Deferral | Catch-up 50+ | Higher deferral | Higher-plan catch-up | IRS notice |
|---|---|---|---|---|---|
| 2018 | $12,500 | $3,000 | — | — | Notice 2017-64 |
| 2019 | $13,000 | $3,000 | — | — | Notice 2018-83 |
| 2020 | $13,500 | $3,000 | — | — | Notice 2019-59 |
| 2021 | $13,500 | $3,000 | — | — | Notice 2020-79 |
| 2022 | $14,000 | $3,000 | — | — | Notice 2021-61 |
| 2023 | $15,500 | $3,500 | — | — | Notice 2022-55 |
| 2024 | $16,000 | $3,500 | — | — | Notice 2023-75 |
| 2025 | $16,500 | $3,500 | $17,600 | $3,850 | Notice 2024-80 |
| 2026 | $17,000 | $4,000 | $18,100 | $3,850 | Notice 2025-67 |
The higher amounts begin in 2025. See also all contribution limits.
Frequently asked questions
What is the SIMPLE IRA contribution limit for 2026?
An employee can defer up to $17,000 in 2026 ($18,100 under the higher limit the IRS describes for certain plans). Participants age 50 or over at the end of the year can add $4,000 if the plan permits ($3,850 for certain applicable plans), or $5,250 at age 60, 61, 62 or 63 in a standard SIMPLE plan. The IRS has not said whether ages 60 to 63 get a larger catch-up in a higher-limit plan.
What is the SIMPLE IRA contribution limit for 2027?
When we checked on November 1, 2026, the IRS had not published its 2027 limits. Computed from the statute and inflation data, not official, the 2027 SIMPLE IRA deferral limit is $17,500, compared with $17,000 for 2026. The same method reproduces the official amounts for earlier years. The higher limit is $19,100 and the catch-up at age 50 or over is $4,000.
Who can use the higher SIMPLE IRA limit?
The IRS plan page ties the higher 2026 limit of $18,100 to employers with 25 or fewer employees, and says employers of 26 to 100 employees can make a 4% matching or 3% nonelective contribution if the higher limit is applicable. Publication 560 says higher contributions apply for certain employers who elect to allow higher salary reduction contributions. Ask your plan provider which limit your plan uses.
How much can I contribute to a SIMPLE IRA at age 50 or at 60 to 63?
For 2026, the table above shows $21,000 at age 50 to 59 or 64 and older under the standard limit, and $22,250 at age 60 to 63 under the standard limit. For a higher-limit plan at age 60 to 63 the table shows no total, because the IRS has not said whether a larger catch-up applies. Each total is the deferral limit plus the catch-up, and the catch-up is allowed only if the plan permits it.
What does the employer have to contribute to a SIMPLE IRA?
The employer must choose each year either a match of up to 3% of compensation or a 2% nonelective contribution for each eligible employee. The IRS says an employee's compensation up to $360,000 for 2026 is taken into account for the 2% contribution.
Does a SIMPLE IRA count toward my 401(k) limit?
Yes. The IRS lists SIMPLE plans among the plans whose salary deferrals are added together, so your total deferrals to all of them cannot exceed $24,500 for 2026 (plus catch-up contributions where they apply). Separately, the IRS says an employer with a SIMPLE IRA plan cannot have any other retirement plan.
Related limits and calculators
Sources
- IRS Notice 2025-67, 2026 amounts relating to retirement plans and IRAs
- IRS news release IR-2025-111 (November 13, 2025)
- IRS: SIMPLE IRA contribution limits
- IRS: SIMPLE IRA plan
- IRS Publication 560 (2025): SIMPLE IRA chapter
- IRS: How much salary can you defer if you’re eligible for more than one retirement plan
- 26 U.S.C. 401(a)(17) (compensation limit) (Cornell LII)
- 26 U.S.C. 408 (SEP in 408(k), SIMPLE IRA in 408(p)) (Cornell LII)
- 26 U.S.C. 402(g) (limit on elective deferrals) (Cornell LII)
- 26 U.S.C. 414(v) (catch-up contributions) (Cornell LII)
Dollar limits for 2018 to 2026 are the amounts printed in the IRS notices, listed in the history table. Quoted passages are copied from the IRS pages named under each quote.