401(k) Limit Increases to $24,500 for 2026, IRA Limit to $7,500

The IRS on Thursday announced the annual contribution limits for qualified defined contribution plans and individual retirement accounts for the 2026 tax year.

The annual contribution limit for workers who participate in 401(k), 403(b) and most 457 plans, as well as the federal government’s Thrift Savings Plan, will be increased to $24,500, up from $23,500 in 2025.

DC plan contribution limits grow in step with the annual inflation rate for each year’s third quarter; this year’s was 4.26%, rounded down to the nearest $500 increment.

Catch-up contributions for those 50 years and older who are invested in DC plans increased to $8,000 from $7,500, adding up to a total allowed annual contribution of $32,500 for qualifying DC plans in 2025.

The super catch-up contribution provision in the SECURE 2.0 Act of 2022 took effect in 2025. It permits those aged 60 through 63 to contribute $11,250 instead of $8,000 in 2026, unchanged from last year, according to the IRS update.

The annual IRA contribution limit will increase to $7,500 from $7,000. The IRA catch‑up contribution limit for individuals aged 50 and older will raise to $1,100 for 2026, up from $1,000 last year, though the IRS noted that the catch-up was amended under SECURE 2.0 to include an annual cost‑of‑living adjustment.

The income eligibility ranges for IRAs and the Saver’s Credit likewise increased for 2025.

Traditional IRAs

For single taxpayers in a workplace plan, the phase-out range for traditional IRAs will increase to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025. For married couples, the amount will increase to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.

For a traditional IRA contributor not covered by a workplace retirement plan and married to someone who is covered, the phase-out range will increase to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.

For a married individual covered by a workplace retirement plan and filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and will remain between $0 and $10,000. 

Roth IRAs

The income phase-out range for taxpayers making contributions to a Roth IRA will increase to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000.

For married couples filing jointly, the income phase-out range will increase to between $242,000 and $252,000, up from between $236,000 and $246,000. 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 will remain between $0 and $10,000.

Saver’s Credit

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers will be $80,500 for married couples filing jointly, up from $79,000; $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 contribute to their SIMPLE retirement accounts will be increased to $17,000, up from $16,500. From a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE [Savings Incentive Match Plan for Employees] retirement accounts. For 2026, this higher amount increased to $18,100, up from $17,600.

The catch-up contribution limit that applies to employees aged 50 and older who participate in most SIMPLE plans increased to $4,000 for 2026 from $3,500 last year. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and older who participate in certain applicable SIMPLE plans. For 2026, this limit remains $3,850. In addition, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans. For 2026, this higher catch-up contribution limit also remains at $5,250.

The minimum threshold for employees to qualify as a highly compensated employee remains at $160,000.

The full notice can be found here.