IRS Announces Higher Retirement Contribution Limits for 2026

zlkcpa
Nov 14
2 min read

Planning for retirement gets a small boost in 2026. The IRS has released new contribution limits for popular retirement plans, reflecting inflation-based adjustments that help taxpayers save more each year. Here’s a simple breakdown of what’s changing and how it may affect your planning.

Workplace Retirement Plans: Higher Limits Ahead

Employees contributing to 401(k), 403(b), governmental 457 plans or the Thrift Savings Plan can save up to $24,500 in 2026. That’s an increase from $23,500 for 2025.

If you’re 50 or older, the catch-up contribution is rising to $8,000. This means eligible savers can set aside a total of $32,500 beginning in 2026.

Workers ages 60 through 63 continue to qualify for a higher catch-up limit under SECURE 2.0. For 2026, that special limit remains $11,250.

IRA Contribution Changes

The annual IRA contribution limit is increasing to $7,500, up from $7,000.

The IRA catch-up contribution for taxpayers age 50 and older will rise to $1,100 thanks to SECURE 2.0’s cost-of-living adjustment rules.

Income Phase-Out Updates for Traditional IRA Deductions

If you or your spouse is covered by a workplace retirement plan, your ability to deduct traditional IRA contributions depends on your income. The phase-out ranges are increasing for 2026:

Single filers: $81,000 to $91,000
Married filing jointly (contributing spouse covered at work): $129,000 to $149,000
Married filing jointly (contributor not covered, spouse is): $242,000 to $252,000
Married filing separately: unchanged at $0 to $10,000

Roth IRA Income Limits for 2026

The income thresholds for Roth IRA eligibility are also increasing:

Singles and heads of household: $153,000 to $168,000
Married filing jointly: $242,000 to $252,000
Married filing separately: unchanged at $0 to $10,000

Updated Limits for the Saver’s Credit

Eligibility for the Saver’s Credit expands slightly next year:

Married filing jointly: up to $80,500
Heads of household: up to $60,375
Singles and married filing separately: up to $40,250

SIMPLE Plan Increases

For SIMPLE retirement plans, the new 2026 limits include:

Contribution limit: $17,000
Higher SIMPLE limit for eligible plans: $18,100
Standard catch-up for age 50+: $4,000
Alternative SIMPLE catch-up limit: $3,850
Enhanced catch-up for ages 60–63: $5,250

Need the Full Technical List?

All inflation-adjusted retirement plan limits for 2026 are available in IRS Notice 2025-67.

Have Questions About How These Limits Affect You?

Kamish & Associates is here to help you understand your options and make informed decisions as you plan for retirement contributions in the new year. If you’d like help reviewing your strategy or adjusting your payroll deferrals, reach out anytime.