Planning for 2026? IRS just changed retirement contribution limits — see what it means for you

IRS retirement contribution limits 2026: As the countdown to the New Year begins, Americans saving for retirement are set to see notable changes in 2026, with updated contribution limits for popular retirement plans such as 401(k)s and individual retirement accounts (IRAs), as per a report.

IRS Retirement Changes 2026: What Savers Need to Know Before the New Year

The Internal Revenue Service (IRS) announced the changes last November, outlining higher contribution limits for 401(k) and 403(b) plans, governmental 457 plans, the federal government’s Thrift Savings Plan, and IRAs, as per The Express report. While the increases are modest, they could provide meaningful relief for retirees and workers trying to keep pace with the rising cost of retirement.

401(k) Contribution Limits Rise in 2026

Americans may need as much as $1.6 million saved to live comfortably in retirement, and 86% of people say that level of comfort is their goal, as per The Express report. However, inflation and rising healthcare expenses continue to pressure retirement budgets. Out-of-pocket costs such as insurance premiums, co-pays, prescription drugs, and long-term care are taking a growing toll, as per the report.


In 2026, the contribution limit for 401(k), 403(b), 457 plans, and the Thrift Savings Plan will increase to $24,500, up from $23,500.

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Catch-Up Contributions Increase for Workers Over 50

Workers aged 50 and older will be allowed to make catch-up contributions of up to $8,000, as per The Express report.

Bigger Savings Window for Ages 60 to 63

Those between the ages of 60 and 63 will be able to contribute even more if their plans permit it, with catch-up contributions rising to $11,250 instead of $8,000.

IRA Contribution Limits Get a Boost Next Year

The IRS is also raising the contribution limit for individual retirement accounts. In 2026, savers will be able to contribute up to $7,500 to an IRA, an increase from $7,000 in 2025. Under the SECURE 2.0 Act of 2022, catch-up contributions for individuals aged 50 and older will increase by $1,100 in 2026 due to an annual cost-of-living adjustment, as per The Express report.

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Roth IRA Income Limits Increase for 2026

These limits apply to both traditional and Roth IRAs, although Roth IRA eligibility depends on income. For single filers and heads of household, the income range for contributing to a Roth IRA will rise to between $153,000 and $168,000. For married couples filing jointly, the range increases to between $242,000 and $252,000, as per The Express report.

FAQs

What’s changing for retirement savings in 2026?

The IRS is raising how much Americans can contribute to 401(k)s, IRAs, and other retirement plans, as per The Express report.

What’s the new IRA contribution limit?

The limit rises to $7,500 in 2026.