IRS Raises 401(k) and IRA Contribution Limits for 2026: Here’s What Changes

The IRS has confirmed new retirement contribution limits for 2026, giving workers more room to save and helping offset rising inflation.

The update, announced November 13, increases limits for 401(k)s, IRAs, SIMPLE plans, and catch-up contributions under SECURE 2.0.

 

New 2026 Contribution Limits at a Glance

401(k), 403(b), 457 & Thrift Savings Plan

• 2026 limit: $24,500

• 2025 limit: $23,500

• Increase: +$1,000

Catch-Up Contributions

• Age 50+: $8,000 (up from $7,500)

• Ages 60–63 (SECURE 2.0): $11,250 remains in place

 

IRA Contribution Limits for 2026

• Annual IRA limit: $7,500 (up from $7,000)

• Catch-up 50+: $1,100 (up from $1,000)

These increases help more Americans qualify for deductions, Roth contributions, and the Saver’s Credit.

 

Updated 2026 Income Phase-Out Ranges

Traditional IRA Deduction

• Married filing jointly (spouse covered at work):
  $129,000–$149,000 (from $126,000–$146,000)

• Single filer covered at work:
  $81,000–$91,000

Roth IRA Eligibility

• Single / Head of household: $153,000–$168,000

• Married filing jointly: $242,000–$252,000

 

SIMPLE Retirement Accounts (2026)

• Contribution limit: $17,000 (up from $16,500)

• Catch-up 50+: $4,000

Some SECURE 2.0 enhanced limits remain for select plan types.

 

Why These Changes Matter

Financial experts say the higher limits are critical as Americans face longer, more expensive retirements. Surveys highlight the challenge:

• Only 40% feel on track for retirement (Vanguard)

• 42% say essential bills leave no disposable income (Goldman Sachs)

• Only 14% maxed out 401(k)s in 2024—mostly older, higher-income workers

The 2026 increases give savers more room to contribute gradually—even if they can’t max out.

 

What Taxpayers Should Do Next

The IRS urges workers and retirees to review IRS Notice 2025-67 to optimize contributions, verify eligibility, and plan for tax-efficient savings in 2026.

• Tax filing deadline: April 15, 2026

• Early filers: Can prepare now; e-filing opens in January

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