The amount individuals can contribute to their 401(k) plans and individual retirement accounts will be higher in 2026, the IRS announced on Nov. 13.
The tax agency also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67.
401(k), catch-up contribution limits
Starting next year, the annual employee deferral limit will increase to $24,500, from $23,500 in 2025, for workplace retirement plans, including 401(k)s, 403(b)s, 457 plans, and the federal government’s Thrift Savings Plan.
The catch-up contribution limit for employees aged 50 and older will increase to $8,000 in 2026, up from $7,500 for 2025, which means they can make a total annual contribution of up to $32,500. Under a change made in the SECURE 2.0 Act of 2022, 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 for regular catch-up contributions.
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IRS Releases 401(k), IRA Contribution Limits For 2025
IRA limits
The limit on annual contributions to an IRA will increase in 2026 to $7,500 from $7,000. The IRA catch‑up contribution limit for individuals aged 50 and older will increase to $1,100 from $1,000 for 2025, after a cost-of-living adjustment, according to the IRS.
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,” the IRS said Thursday. “If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.)”
Phase-out ranges
The IRS provided the following 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 isn’t 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 isn’t subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
- The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025. For married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA isn’t subject to an annual cost-of-living adjustment and remains between $0 and $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 older 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 older who participate in certain applicable SIMPLE plans, which remains $3,850. 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 SIMPLE plans, which remains $5,250.
More information on these and other retirement-related cost-of-living adjustments for 2026 are in Notice 2025-67.
Photo credit: Douglas Rissing/iStock
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