The IRS announced that in 2026, people who save for retirement through a 401(k), 403(b), 457 plan, or the federal Thrift Savings Plan will be able to put in more money. The new limit will be $24,500, which is $1,000 more than the limit for 2025. This increase helps workers save a little more each year through their jobs, especially as living costs and retirement needs continue to rise.
IRA Limits Are Going Up Too
Traditional IRA and Roth IRA contribution limits will also rise. In 2026, the maximum amount you can put into an IRA will be $7,500, up from $7,000 in 2025. This gives people who save on their own, outside of work, more space to grow their retirement money in tax-favored accounts.
Bigger Catch-Up Amounts for Older Savers
If you are 50 or older, you’re allowed to contribute extra money, known as a “catch-up” contribution. In 2026:
- For 401(k)-type plans, the catch-up limit will rise to $8,000, up from $7,500.
- For IRAs, the catch-up amount will increase from $1,000 to $1,100.
There is also a special catch-up rule for people ages 60 to 63, allowing them to contribute even more to workplace plans. That special limit will stay at $11,250 for 2026. These higher limits help older adults boost their savings as retirement gets closer.
Income Rules and Phase-Out Ranges Are Changing
The IRS is also raising the income ranges that determine who can get certain tax benefits. For example, if you have a traditional IRA, the amount of income you can earn before you lose the ability to deduct your contributions will be higher. The same goes for Roth IRAs, where there are income limits on who can contribute. The new ranges mean more people will stay eligible, and some who were previously cut off may now qualify. The Saver’s Credit, a tax break for lower- and middle-income workers, will also use higher income limits.
Why These Changes Matter
These increases are meant to help people save more for their future at a time when retirement costs keep going up. A higher limit gives you more room to grow your retirement accounts and reduce your taxable income. If you’re planning ahead, these new numbers are a good reminder to review your budget, look at how much you’re saving, and think about raising your contributions in 2026. Even small increases can make a big difference over time.
