Wealthy PotTypes of Retirement Plans: Every Account Compared, With 2026 Limits
The US has a dozen kinds of retirement account, and the names hide how simple the structure is. There are workplace plans your employer sets up (401(k), 403(b), 457(b), the federal Thrift Savings Plan), individual accounts you open yourself (traditional and Roth IRAs), plans for the self-employed (SEP IRA, SIMPLE IRA, solo 401(k)), and pensions, which pay a set income rather than holding an account balance. For 2026 the headline limits are $24,500 for 401(k)-type plans and $7,500 for IRAs, per IRS Notice 2025-67, and most people can use one of each. This page compares every plan in one table, explains how the limits stack, and suggests an order to fill them.
The Short Answer
- Through work: a 401(k), 403(b), 457(b) or TSP, with a $24,500 employee limit for 2026, plus catch-ups from 50.
- On your own: a traditional or Roth IRA, $7,500 for 2026 ($8,600 at 50 and over). You can have one alongside a workplace plan.
- Self-employed: a SEP IRA (up to 25% of compensation, capped at $72,000), a SIMPLE IRA ($17,000), or a solo 401(k), which usually allows the most.
- Traditional vs Roth is a tax choice available in most plans, not a separate plan type: pay tax now (Roth) or later (traditional).
- A common order: capture any employer match, then fill an IRA or HSA, then go back to the workplace plan.
All Plans Compared: 2026 Limits
| Plan | Who it's for | 2026 contribution limit | Catch-up (50+) | Roth option |
|---|---|---|---|---|
| 401(k) | Private-sector employees | $24,500 employee; $72,000 total | $8,000 ($11,250 at 60-63) | If the plan offers it |
| 403(b) | Public schools, non-profits | $24,500 employee; $72,000 total | $8,000 ($11,250 at 60-63) | If the plan offers it |
| Governmental 457(b) | State and local government | $24,500, a separate limit | $8,000 ($11,250 at 60-63) | If the plan offers it |
| Thrift Savings Plan | Federal employees and military | $24,500 employee; $72,000 total | $8,000 ($11,250 at 60-63) | Yes |
| Traditional IRA | Anyone with earned income | $7,500 (shared with Roth IRA) | $1,100 | n/a |
| Roth IRA | Earned income, below the income limits | $7,500 (shared with traditional) | $1,100 | It is one |
| SIMPLE IRA | Employees of small employers | $17,000 | $4,000 ($5,250 at 60-63) | Varies |
| SEP IRA | Self-employed and small employers | Lesser of 25% of compensation or $72,000, employer-funded | None | Varies |
| Solo 401(k) | Self-employed with no employees (other than a spouse) | $24,500 employee plus employer contribution, up to $72,000 total | $8,000 ($11,250 at 60-63) | If the plan offers it |
| Defined benefit pension | Employees of employers that offer one | Annual benefit up to $290,000 | n/a | n/a |
How the limits stack. Your 401(k) and 403(b) deferrals share one $24,500 limit however many plans you are in. A governmental 457(b) has its own separate limit. IRAs have a separate $7,500 limit on top. So a teacher with a 403(b) and a 457(b) could, in principle, defer $24,500 to each and still fund an IRA.
Workplace Plans
Workplace defined contribution plans let you save straight from your paycheck, often with an employer match. The 401(k) is the private-sector version; the 403(b) serves schools, hospitals and non-profits; the 457(b) serves state and local governments; the TSP is the federal equivalent. They work similarly: pre-tax or Roth deferrals, investment choices set by the plan, and a 10% additional tax on most withdrawals before 59½, with exceptions including separation from service at 55.
- Our 401(k) plan guide covers how the account works.
- The 2026 401(k) limits page covers catch-ups and the Roth catch-up rule that applies to higher earners from 2026.
- Federal employees can model the match with our TSP calculator.
- Leaving a job? See 401(k) rollover.
IRAs
Individual retirement accounts are opened with a bank or brokerage, independent of any job. For 2026 the combined limit across traditional and Roth IRAs is $7,500, or $8,600 at 50 and over.
- Traditional IRA: contributions may be deductible depending on income and whether you have a workplace plan; withdrawals are taxed. See traditional IRA.
- Roth IRA: no deduction, but qualified withdrawals are tax-free, and direct contributions phase out between $153,000 and $168,000 (single) or $242,000 and $252,000 (joint) for 2026. See Roth IRA limits and whether a Roth is worth it.
- Where to open one: brokerage IRA or bank vs brokerage.
Plans for the Self-Employed
- SEP IRA. Funded only by the employer, which for a sole proprietor is you. The IRS: contributions "cannot exceed the lesser of: 25% of the employee's compensation, or $72,000 for 2026," and "elective salary deferrals and catch-up contributions are not permitted in SEP plans." Simple to run.
- SIMPLE IRA. For businesses with employees who want a low-cost plan. Employees defer up to $17,000 and the employer must contribute a set amount.
- Solo 401(k) (one-participant 401(k)). For a business owner with no employees other than a spouse. You contribute as the employee up to the $24,500 deferral limit, plus employer nonelective contributions of up to 25% of compensation, within the $72,000 total. Because the employee deferral is not tied to a percentage of income, a solo 401(k) usually allows more than a SEP at modest incomes.
Our guide to retirement plans for the self-employed works through the choice, and the home office deduction is the other big self-employed tax break.
Pensions and Cash Balance Plans
A defined benefit plan promises a set income in retirement, usually based on salary and years of service, and the employer carries the investment risk. For 2026 the maximum annual benefit such a plan can pay is $290,000. They are now uncommon in the private sector but remain widespread in government. A cash balance plan is a defined benefit plan that expresses your benefit as an account balance, which makes it look like a 401(k) while keeping the employer's guarantee. If you have a pension, count its income when you work out how much you need to retire.
Traditional or Roth, in Any Plan
Most plans now offer both. The choice is about when you pay tax:
- Traditional (pre-tax): reduces taxable income now; withdrawals are taxed as income. Better if you expect a lower tax rate in retirement.
- Roth (after-tax): no tax break now; qualified withdrawals are tax-free. Better if you expect a higher rate later, and it hedges against future tax changes.
Many people split contributions between the two. The 2026 tax brackets tell you your current rate, and Roth 401(k) vs Roth IRA compares the two Roth routes.
The Saver's Credit
Lower-income savers can get a tax credit for contributing. The IRS: the credit is "50%, 20% or 10%" of contributions to an IRA or workplace plan, on up to $2,000 of contributions ($4,000 married filing jointly), "making the maximum credit $1,000 ($2,000 if married filing jointly)." The 2026 income limits:
| Credit rate | Married filing jointly (AGI) | Head of household | All other filers |
|---|---|---|---|
| 50% | Up to $48,500 | Up to $36,375 | Up to $24,250 |
| 20% | $48,501 to $52,500 | $36,376 to $39,375 | $24,251 to $26,250 |
| 10% | $52,501 to $80,500 | $39,376 to $60,375 | $26,251 to $40,250 |
For tax years beginning after 2026, the SECURE 2.0 Act (Public Law 117-328, section 103) creates a Saver's Match, a federal matching contribution paid into your retirement account.
Which Order to Fill Them
There is no official ranking, but a common sequence for someone with a workplace plan and some spare income:
- Contribute enough to get the full employer match. It is an immediate return no other account can offer.
- Pay off high-interest debt. At the 22% average card rate, clearing debt beats almost any investment; see paying off credit card debt.
- Fund an HSA if you have an eligible health plan; see health savings account.
- Fund an IRA, often a Roth, for its flexibility and wider investment choice.
- Go back and raise workplace contributions toward the $24,500 limit.
- Then taxable investing, with tax-loss harvesting and the long-term capital gains rates working for you.
Your own order can reasonably differ: a plan with very low-cost funds may beat an IRA, and someone saving for a home soon may keep more outside retirement accounts.
Sources & Methodology
- IRS Notice 2025-67, for every 2026 dollar limit and the Saver's Credit income limits.
- IRS, SEP contribution limits, and IRS, One-participant 401(k) plans.
- IRS, Saver's Credit, for the credit rates and caps.
- Public Law 117-328 (SECURE 2.0), section 103, for the Saver's Match.
The filling order is a common planning sequence, not an IRS rule.
FAQ
What are the main types of retirement plans?
Workplace plans (401(k), 403(b), 457(b), TSP), individual retirement accounts (traditional and Roth IRA), plans for the self-employed (SEP IRA, SIMPLE IRA, solo 401(k)), and pensions.
Can I have a 401(k) and an IRA at the same time?
Yes. The limits are separate: $24,500 for the 401(k) and $7,500 for IRAs in 2026. Having a 401(k) can limit whether a traditional IRA contribution is deductible, not whether you can make it.
What is the best retirement plan for the self-employed?
A solo 401(k) usually allows the largest contributions for a business with no employees, because you contribute both as employee and employer. A SEP IRA is simpler; a SIMPLE IRA suits small businesses with staff.
What is the difference between a 401(k) and a 403(b)?
Mainly the employer: 401(k)s are offered by private companies, 403(b)s by schools, hospitals and non-profits. The contribution limits are the same, and deferrals to both share one limit.
What is the maximum I can put in retirement accounts in 2026?
For a typical employee under 50: $24,500 in a 401(k) plus $7,500 in an IRA, or more with a separate 457(b), employer contributions, or an HSA.
Who qualifies for the Saver's Credit?
For 2026, joint filers with AGI up to $80,500, heads of household up to $60,375, and other filers up to $40,250, who contribute to an IRA or workplace plan.
This article is for general information and is not tax or investment advice. Limits are from IRS Notice 2025-67 and the IRS and statutory sources listed above, checked on 2026-09-30. Plan features depend on your employer's plan documents.
