IRS Announces 2026 Contribution Maximums for Retirement Plans

The U.S. Internal Revenue Service (IRS) on Thursday, Nov. 13, announced that the maximum amount that individuals can contribute to their 401(k) plans — or similar 403(b), governmental 457 or federal government Thrift Savings plans — in 2026 is $24,500, a $1,000 increase from the $23,500 maximum for 2025.

The agency’s Notice 2025-67 also included technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2026 tax year.

Base Changes for 2026

Besides the base contribution limits for 401(k) and related plans, the IRS raised the 2026 catch-up contribution limit that is generally applicable for workers aged 50 and over. In most cases, participants may contribute up to $8,000 to their plans, versus $7,500 in 2025. Workers aged 60, 61, 62 and 63 can contribute a maximum of $11,250, the same total as in 2025. The latter is a benefit provided under the SECURE 2.0 Act of 2022 (SECURE 2.0).

The 2026 maximum contribution to an individual retirement account (IRA) is $7,500, up from $7,000 in 2025. The IRA catch-up contribution limit for individuals aged 50 and over is $1,100, up from $1,000 in 2025, as the result of SECURE 2.0 cost-of-living adjustments.

Contribution Deductions and Phase-out Ranges

Also increasing for 2026 are the income ranges for determining eligibility to:

• Make deductible contributions to traditional IRAs;
• Contribute to Roth IRAs; and,
• Claim the Saver’s Credit.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year, either the taxpayer or taxpayer’s spouse was covered by a work-sponsored retirement plan, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor spouse is covered by such a retirement plan, the deduction phase-outs don’t apply.)

Phase-out ranges for 2026 include:

Other Phase-out Ranges and Limitations

The notice also provides limitations for 2026 for Roth IRAs, the Saver’s Credit and Savings Incentive Match Plan for Employees (SIMPLE) retirement accounts.

• The income phase-out range for taxpayers making contributions to a Roth IRA is between:
  • $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025;
  • $242,000 and $252,000 for married couples filing jointly, up from $236,000 and $246,000; and,
  • $0 and $10,000 for a married individual filing a separate return who makes contributions to a Roth IRA, the same as 2025 since this is not subject to an annual cost-of-living adjustment.
• 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; and,
  • $40,250 for singles and married individuals filing separately, up from $39,500.
• The amount individuals can generally contribute to their SIMPLE retirement accounts is $17,000, up from $16,500 for 2025. Pursuant to a SECURE 2.0 change, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is $18,100, up from $17,600 for 2025.
• The catch-up contribution limit that generally applies for workers aged 50 and over who participate in most SIMPLE plans is increased to $4,000, up from $3,500 for 2025. For workers aged 50 and over who participate in certain applicable SIMPLE plans, the catch-up limit remains $3,850. For workers aged 60, 61, 62 and 63 who participate in SIMPLE plans, the limit remains $5,250.

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