IRS Announces Higher 401(k) and IRA Contribution Limits for 2026
The IRS has released its annual cost-of-living adjustments for retirement accounts, and individuals will see increased contribution limits across several key retirement plans for tax year 2026. These updates—outlined in IRS Notice 2025-67—affect 401(k)s, IRAs, and income phase-out ranges tied to retirement-related tax benefits.
Below is a clear summary of what’s changing and how it may impact your retirement planning.
Higher 401(k), 403(b), and 457 Contribution Limits
Individuals contributing to 401(k), 403(b), governmental 457 plans, or the federal Thrift Savings Plan can contribute up to $24,500 in 2026, up from $23,500 for 2025.
Catch-Up Contributions for Ages 50+
The general catch-up contribution increases to $8,000 (from $7,500).
This means participants age 50+ can contribute a total of $32,500 to these plans beginning in 2026.
Enhanced Catch-Up Contributions for Ages 60–63
Under SECURE 2.0, individuals aged 60, 61, 62, or 63 qualify for a higher catch-up limit.
For 2026, that special catch-up amount remains $11,250.
IRA Contribution Limits Increasing in 2026
The annual limit for traditional and Roth IRAs increases to $7,500 for 2026 (up from $7,000).
IRA Catch-Up Contribution (Age 50+)
Because SECURE 2.0 now indexes the catch-up amount for inflation:
The IRA catch-up contribution increases to $1,100 (up from $1,000).
Updated Income Phase-Out Ranges for Traditional IRA Deductions
Your ability to deduct a traditional IRA contribution may be limited based on income and whether you or your spouse are covered by a workplace retirement plan.
2026 Phase-Out Ranges for IRA Deductions
Single filers with a workplace plan:
$81,000–$91,000 (up from $79,000–$89,000)Married filing jointly, contributor covered by a workplace plan:
$129,000–$149,000 (up from $126,000–$146,000)Married filing jointly, contributor not covered but spouse is covered:
$242,000–$252,000 (up from $236,000–$246,000)Married filing separately (covered by a plan):
Remains unchanged at $0–$10,000
Updated Income Phase-Out Ranges for Roth IRA Contributions
Income limits for Roth IRA eligibility are also increasing for 2026.
2026 Roth IRA Phase-Out Ranges
Single filers and heads of household:
$153,000–$168,000 (up from $150,000–$165,000)Married couples filing jointly:
$242,000–$252,000 (up from $236,000–$246,000)Married filing separately:
Unchanged at $0–$10,000
What These Changes Mean for Taxpayers
The 2026 cost-of-living adjustments provide expanded opportunities to save for retirement, especially for individuals nearing retirement age who can take advantage of higher catch-up contribution limits. With increased contribution limits and expanded income thresholds, now is a great time to evaluate your retirement strategy and ensure you’re maximizing available tax benefits.
If you’d like personalized tax planning guidance or a review of your retirement contribution strategy, our office is here to help.
