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The IRS is increasing retirement contribution limits for 2026

Catch-up limits are also going up

Updated:

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • The IRS announced that the 401(k) contribution limit for 2026 has increased to $24,500, up $1,000 from 2025.
  • IRA contribution limits also rose to $7,500, with catch-up contributions for those 50 and older increasing to $1,100.
  • Income phase-out ranges for deductible IRA contributions, Roth IRA contributions, and the Saver’s Credit have generally increased for 2026.

The Internal Revenue Service (IRS) has issued new retirement plan contribution limits for the 2026 tax year, marking an increase in the amount individuals can set aside in their retirement accounts. 

The annual contribution limit for employees participating in 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan will rise to $24,500 from the $23,500 limit set for 2025. For those aged 50 and over, the catch-up contribution limit for these plans increases to $8,000, with a higher catch-up contribution of $11,250 available to employees aged 60 through 63 under the SECURE 2.0 Act of 2022.

Similarly, Individual Retirement Account (IRA) contribution limits have increased, with the standard limit rising to $7,500 from $7,000. The catch-up contribution limit for individuals aged 50 and older is now $1,100, up from $1,000 in 2025. These increases enhance the ability of savers to boost their retirement funds with tax advantages.

Income thresholds affecting IRA deductibility, Roth IRA contribution eligibility, and the Saver’s Credit have also increased due to cost-of-living adjustments. For instance, the phase-out range for deductible IRA contributions for single taxpayers covered by a workplace retirement plan rises to between $81,000 and $91,000, up from $79,000 to $89,000 in 2025. 

Married couples filing jointly see an increase to between $129,000 and $149,000 from $126,000 to $146,000. The income phase-out for Roth IRAs increases to between $153,000 and $168,000 for singles and heads of household, and to $242,000 to $252,000 for married couples filing jointly. Additionally, income limits for the Saver’s Credit rise modestly to $80,500 for married couples filing jointly, among others.

The IRS also updated contribution limits for SIMPLE retirement accounts, with the general limit increasing to $17,000 and catch-up contributions for those 50 and older increasing to $4,000 for most plans and $3,850 for certain applicable plans. For employees aged 60 to 63, a higher catch-up contribution of $5,250 remains unchanged.

The IRS’s detailed technical guidance, including these adjustments, is outlined in Notice 2025-67, available on IRS.gov. These changes reflect adjustments for inflation and legislative updates, primarily driven by the SECURE 2.0 Act, which allows Americans to save more for retirement amid rising living costs.