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IRS Lifts 2026 Retirement Contribution Caps, With Bigger Catch-Ups for Older Savers

Employers must update payroll systems to reflect the new caps.

Overview

  • Employee deferral limits for 401(k), 403(b), most 457 plans and the Thrift Savings Plan rise to $24,500 in 2026, the largest increase in two years and double the $500 bumps of 2024 and 2025.
  • The 50+ catch-up for workplace plans increases to $8,000 next year, while the Secure 2.0 enhanced catch-up for savers ages 60 to 63 remains $11,250 on top of the standard limit.
  • IRA contribution caps climb to $7,500 for 2026, and the IRA catch-up for those 50 and older increases to $1,100.
  • Roth IRA income phase-outs move to $153,000–$168,000 for single filers and $242,000–$252,000 for married couples filing jointly, with traditional IRA deduction ranges also stepping up.
  • Saver’s Credit eligibility expands to incomes up to $80,500 for joint filers, $60,375 for heads of household and $40,250 for single filers, with full details posted by the IRS.