IRS reveals updated retirement contribution limits for 2026

Published: Friday, November 14, 2025 at 3:03 pm

IRS Announces Increased Retirement Contribution Limits for 2026

The Internal Revenue Service (IRS) has announced updated contribution limits for various retirement plans, effective in 2026. These adjustments, driven in part by the SECURE 2.0 Act, aim to provide Americans with greater opportunities to save for their retirement.

For those participating in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan, the contribution limit will increase to $24,500 in 2026, up from $23,500 in 2025. The IRA contribution limit will also see a rise, increasing to $7,500 in 2026 from $7,000 this year.

Individuals aged 50 and older who utilize catch-up contributions to their IRAs will be able to contribute an additional $1,100, up from $1,000 this year. For those participating in 401(k), 403(b), government 457 plans and the federal Thrift Savings Plan, the catch-up contribution limit will increase to $8,000 next year, an increase from $7,500 in 2025. This means that those eligible for catch-up contributions in these plans could contribute a total of $32,500 starting in 2026. A further provision of the SECURE 2.0 Act establishes a higher catch-up contribution limit of $11,250 for workers aged 60, 61, 62, and 63 participating in these plans.

The IRS also announced changes to income phase-out ranges for those who can deduct contributions to a traditional IRA. For single taxpayers covered by a workplace retirement plan, the phase-out range will increase to between $81,000 and $91,000 in 2026. For married couples filing jointly, the phase-out range will increase to between $129,000 and $149,000. The phase-out range for Roth IRA contributions will also increase. For singles and heads of household, the range will be between $153,000 and $168,000. For married filers, the range will be between $242,000 and $252,000.

BNN's Perspective:

These adjustments are a welcome development, offering Americans more flexibility and opportunity to save for retirement. While the increases are modest, they reflect a recognition of the rising costs of living and the need for adequate retirement planning. It is important for individuals to review their financial plans and consider how these changes can be incorporated into their long-term savings strategies.

Keywords: retirement, 401(k), IRA, contribution limits, SECURE 2.0 Act, catch-up contributions, Roth IRA, tax deductions, income phase-out, retirement savings, IRS, 2026, 403(b), 457 plans, Thrift Savings Plan

Full Story