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4d ago

IRS Lifts 2026 401(k) and IRA Caps as Roth Catch‑Up Rules Kick In

Plan sponsors face administrative updates to apply the new limits, including Roth-only catch‑ups for some high earners.

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FILE - A sign is displayed outside the Internal Revenue Service building May 4, 2021, in Washington. (AP Photo/Patrick Semansky, File)
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IRS tax bracket breakdown: Income categories, changes in capital gains explained for US taxpayers

Overview

  • Employee deferral limits for 401(k), 403(b), most 457 plans and the Thrift Savings Plan rise to $24,500 for 2026, up from $23,500.
  • IRA contribution caps increase to $7,500 next year, with the IRA catch‑up for those 50+ moving to $1,100 after a cost‑of‑living adjustment.
  • The 401(k) catch‑up limit for savers 50 and older climbs to $8,000 in 2026, while the age 60–63 “super catch‑up” remains $11,250.
  • Under SECURE 2.0 and IRS guidance, catch‑up contributions by higher‑income workers (prior‑year wages of at least $150,000) must be Roth, though plans are not required to offer Roth or catch‑up features.
  • Income phase‑out ranges for deductible IRAs, Roth IRAs and the Saver’s Credit increase for 2026, as data show only about 14% of 401(k) participants maxed out contributions in 2024.