IRS ups limits for 401(k) and IRA contributions in 2026

The Internal Revenue Service increased the annual retirement plan contribution limits for 2026 thanks to cost-of-living adjustments for inflation. 

The maximum limit for 401(k) plans as well as 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan grew to $24,500 in 2026, up from $23,500 for 2025, the IRS announced Thursday as employees returned from the record-setting government shutdown. The upper limit on annual contributions to an IRA grew to $7,500, up from $7,000. 

The IRS usually announces the retirement planning contribution limits the same week as the tax brackets and other annual inflation adjustments, but this year the tax brackets were announced over a month ago. Nearly half of the IRS workforce was furloughed around the same time. After President Trump signed a continuing resolution Wednesday night reopening the government from the six-week shutdown, federal employees were told to return to work Thursday. The IRS is reportedly in the process of rescinding the layoff notices it sent out in October, mostly to IT and HR employees.

The IRS also issued technical guidance in Notice 2025-67 on other cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026.

The maximum limit on annual contributions to an IRA grew 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 is increased to $1,100, up from $1,000 for 2025.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan grew to $8,000, up from $7,500 for 2025. That means participants in most 401(k), 403(b), governmental 457 plans and the federal government's Thrift Savings Plan who are 50 and older typically can contribute up to $32,500 each year, starting in 2026. 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 Individual Retirement Arrangements (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. 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.) 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 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 grew 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.

Other phase-out ranges and limits

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

• The income phase-out range for taxpayers making contributions to a Roth IRA 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 is not 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 typically applies for employees aged 50 and over who participate in most SIMPLE plans rose 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. 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 stays at $5,250.

Notice 2025-67 provides a listing of all the dollar limitations applicable to qualified retirement plans as adjusted for cost-of-living adjustments for 2026.