The Internal Revenue Service announced new contribution limits for key retirement plans for tax year 2026, offering increased opportunities for Americans to save.
Under the new guidelines, workers contributing to tax-favored plans such as 401(k), 403(b), governmental 457 and the federal Thrift Savings Plan will see their elective deferral limit rise to $24,500 from $23,500 in 2025. Individual Retirement Account (IRA) contribution limits are increasing to $7,500, up from $7,000 this year.
For those age 50 and over, the catch-up contribution limit for the workplace plans listed above will increase to $8,000 (from $7,500), bringing the total possible contribution to $32,500 in 2026. Additionally, under a provision of the SECURE 2.0 Act, participants aged 60–63 in these plans will continue to have a higher catch-up limit of $11,250, unchanged for 2026.
The IRS also adjusted phase-out ranges for deductible traditional IRA contributions and Roth IRA eligibility.
For single taxpayers covered by a workplace retirement plan, the deductible contribution phase-out will increase to $81,000-$91,000 from $79,000-$89,000 for 2025. Married couples filing jointly, if the contributing spouse is covered by a workplace plan, will see the phase-out range jump to $129,000-$149,000. For Roth IRAs, the phase-out range for singles and heads of household will increase to $153,000-$168,000 (up $3,000), and for married filers to $242,000-$252,000 (up $6,000).
These changes reflect the IRS’s annual adjustment of contribution limits to reflect cost-of-living increases.
