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 rise for workers 50 and older, with special higher limits for those aged 60 to 63.
- Income thresholds tied to IRA deductions, Roth IRA eligibility, and the Saver’s Credit all shift upward.
The IRS released its annual inflation adjustments for retirement accounts today, setting higher contribution limits for 2026 across 401(k) plans, IRAs, SIMPLE accounts, and more. The figures appear in Notice 2025-67 (PDF File) and take effect on January 1, 2026.
The regular 401(k) employee contribution cap will rise to $24,500, an increase of $1,000 from 2025. The standard IRA contribution limit will climb to $7,500, up from $7,000. These are the same contribution limits for 403(b) plans. These adjustments follow the usual annual review tied to consumer price changes and reflect the first set of increases since the prior year’s shift.
Catch-up contribution rules (important for older workers trying to build savings in the final stretch before retirement) also move upward. Under the SECURE 2.0 law, annual cost adjustments now apply to the IRA catch-up amount.
The 2026 IRA catch-up limit for people 50 and older will be $1,100, up from $1,000.
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Workplace Retirement Plan Changes (401k and 403b)
Retirement savers who participate in 401(k), 403(b), governmental 457 plans, or the federal Thrift Savings Plan will see a higher contribution limits for 2026. Workers under age 50 will be able to contribute $24,500. Those 50 and older can contribute an extra $8,000, bringing their total possible annual contribution to $32,500.
SECURE 2.0 introduced a separate rule offering even higher catch-up amounts for workers aged 60 through 63. For 2026, that limit will remain $11,250, which is more than the standard catch-up figure.
The maximum contribution limit also rises to $72,000. This is especially helpful for those using a solo 401k.
SIMPLE retirement plans (sometimes offered at small employers) also receive increases. The base contribution limit goes to $17,000, while certain SIMPLE plans eligible for higher limits under SECURE 2.0 can go up to $18,100. The standard catch-up contribution for SIMPLE plans will rise to $4,000 for workers 50 and older. Two SECURE 2.0 categories for enhanced SIMPLE contributions remain unchanged: $3,850 for certain applicable plans and $5,250 for workers aged 60 to 63.
IRA Contribution Limit Increases
IRA contribution limits also increased in 2026. The normal contribution amount will be $7,500 for those under age 50. There's a higher catch-up contribution of $1,100, making the contribution limit for those over 50 $8,600.
Eligibility for deducting traditional IRA contributions depends on income and whether an individual (or their spouse) is covered by a workplace retirement plan. All phase-out ranges rise for 2026:
- Single workers with workplace plan coverage: $81,000–$91,000, up from $79,000–$89,000.
- Married couples filing jointly when the contributing spouse is covered: $129,000–$149,000, up from $126,000–$146,000.
- Married couples when only the non-covered spouse is contributing: $242,000–$252,000, up from $236,000–$246,000.
- Married individuals filing separately: unchanged at $0–$10,000.
Roth IRA income limits rise as well. Singles and heads of household will see a phase-out range of $153,000–$168,000, while couples filing jointly will have a range of $242,000–$252,000. The $0–$10,000 range for married individuals filing separately remains unchanged.
Saver's Credit Adjustments
The Saver’s Credit, which supports retirement contributions among lower- and moderate-income workers, will expand slightly:
- Married couples filing jointly: eligible up to $80,500.
- Heads of household: eligible up to $60,375.
- Singles and married filing separately: eligible up to $40,250.
These revised thresholds may offer more room for some households to qualify for the credit, which reduces federal income tax liability when taxpayers make retirement contributions.
What This Means For 2026
For many workers, these adjustments open the door to modestly higher tax-advantaged savings. For those approaching retirement age, the expanded catch-up contribution limits may offer more flexibility, especially for people in the 60 - 63 age range who qualify for the special higher thresholds in workplace plans and SIMPLE accounts.
Taxpayers who qualify for the Saver’s Credit could benefit from higher income limits, especially in households experiencing wage growth that previously threatened to push them out of the credit’s range.
The end result is that Americans can potentially save more for retirement in 2026.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
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