IRS announces 2026 retirement contribution limits

The amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025, according to the Internal Revenue Service (IRS).

The annual contribution limit increase also applies to employees who participate in 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan.

The IRS has issued technical guidance regarding all cost‑of‑living adjustments that affect dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67.

The limit on annual Individual Retirement Arrangements (IRA) contributions is increased to $7,500 from $7,000. The IRA catch-up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 to include an annual cost‑of‑living adjustment, up $100 compared to 2025 to $1,100.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most of the aforementioned plans is increased to $8,000, up from $7,500 for 2025.

“Therefore, participants in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026,” the IRS says. “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 these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.”

The income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the Saver’s Credit all increased for 2026.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions, such as if a workplace retirement plan covered the taxpayer or their spouse. If that’s the case, the IRS says the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income.

Here are the phase‑out ranges for 2026:

• • “For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025.
  • “For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
  • “For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
  • “For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.”

The notice also provides 2026 limitations for Roth IRAs, the Saver’s Credit, and SIMPLE retirement accounts.

The income phase-out range for taxpayers making contributions to a Roth IRA is increased to $153,000–$168,000 for singles and heads of household, up from $150,000–$165,000 for 2025.

For married couples filing jointly, the income phase-out range is increased to $242,000–$252,000, up from $236,000–$246,000 for 2025.

The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0–$10,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly, up from $79,000 for 2025; $60,375 for heads of household, up from $59,250 for 2025; and $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.

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 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. SECURE 2.0 also allows a higher catch-up contribution limit for employees aged 60, 61, 62, and 63 who participate in SIMPLE plans, which remains $5,250.

Images

Featured image credit: tumsasedgars/iStock