Key points
- The IRS raised the 2026 contribution limits for 401(k) and 403(b) plans to $24,500 and IRA limits to $7,500.
- Catch-up contributions are higher for workers age 50 and older, with especially higher limits for those ages 60 to 63.
- The income thresholds associated with IRA deductions, Roth IRA eligibility, and the savings credit are all shifting upward.
The IRS released annual inflation adjustments for retirement accounts today, setting higher contribution limits for 2026 across 401(k) plans, IRAs, SIMPLE accounts, and more. The numbers appear in Notice 2025-67(PDF file) It enters into force on January 1, 2026.
The maximum regular employee 401(k) contribution will increase to $24,500an increase of $1,000 from 2025. The standard IRA contribution limit will rise to $7500up from $7,000. These are the same contribution limits for 403(b) plans. These adjustments follow the usual annual review associated with consumer price changes and reflect the first set of increases since the previous year’s shift.
Catch-up contribution rules (important for older workers trying to build their final savings before retirement) are also moving up. Under the SECURE Act 2.0, annual cost adjustments now apply to the IRA catch-up amount.
The IRA catch-up limit will be 2026 for people age 50 or older $1100up from $1,000.
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Workplace Retirement Plan Changes (401k and 403b)
Retired savers who participate in 401(k), 403(b), state 457 plans, or the federal savings plan will see higher contribution limits for 2026. Workers under 50 will be able to contribute $24,500. Those 50 or older can contribute an additional amount $8000bringing their total potential annual contribution to $32,500.
SECURE 2.0 introduced a separate rule offering higher compensation amounts to workers ages 60 to 63. For 2026, this limit will remain in place $11,250which is more than the record catch-up number.
The maximum contribution also increases to $72,000. This is especially useful for those using a solo 401k.
SIMPLE retirement plans (sometimes offered at small employers) also receive raises. The basic contribution limit goes to $17,000while some SIMPLE plans eligible for higher limits under SECURE 2.0 can reach $18,100. The standard catch-up contribution for SIMPLE plans will rise to $4000 For workers 50 and over. Two safe 2.0 classes for simple, improved contributions remain unchanged: $3850 For some plans in place and $5,250 For workers aged 60 to 63 years.
Increase the IRA contribution limit
IRA contribution limits were also increased in 2026. It will be the regular contribution amount $7500 For those under 50 years old. There is a higher catch-up contribution of $1,100, making the maximum contribution for those over 50 $8600.
Eligibility for the deduction for traditional IRA contributions depends on income and whether the individual (or his or her spouse) is covered by a workplace retirement plan. All phase-out ranges rise for 2026:
- Solo workers covered by a workplace plan: $81,000 – $91,000up from $79,000 to $89,000.
- Married couples filing jointly when the contributing spouse is covered: $129,000 – $149,000up from $126,000 to $146,000.
- Married couples when only the non-covered spouse contributes: $242,000 – $252,000up from $236,000 to $246,000.
- Married individuals file separately: no change in $0 – $10,000.
Roth IRA income limits are also rising. Individuals and heads of households will see scope for phasing out $153,000 – $168,000while couples filing jointly will have a combination of $242,000 – $252,000. The range from $0 to $10,000 for married individuals filing separately remains unchanged.
Savings credit adjustments
The Savings Credit, which supports retirement contributions among low- and middle-income workers, will expand slightly:
- Married couples filing jointly: Even eligible $80,500.
- Heads of household: even eligible $60,375.
- Singles and married couples registered separately: even eligible $40,250.
These revised thresholds may provide more room for some households to qualify for the credit, reducing federal income tax liabilities when taxpayers make retirement contributions.
What does this mean for 2026?
For many workers, these adjustments open the door to modestly higher savings with tax benefits. For those nearing retirement age, expanded contribution limits may provide more flexibility, especially for people ages 60 to 63 who qualify for higher thresholds especially in workplace plans and SIMPLE accounts.
Taxpayers who qualify for the savings credit could benefit from higher income limits, especially in households experiencing wage growth that previously threatened to push them out of the credit.
The end result is that Americans will likely be able to save more for retirement in 2026.
Don’t miss these other stories:
IRA Contribution Limits and Income Limits (Annual Guide)
401k Contribution Limits and Income (Annual Guide)
Best IRA Match Bonuses and Transfer Offers
Editor: Colin Greaves
The post IRS Officially Announces IRA and 401k Contribution Limits for 2026 appeared first on The College Investor.
