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56m ago

IRS Lifts 2026 Retirement Saving Caps: 401(k) to $24,500, IRA to $7,500

Higher 2026 limits arrive with a Roth‑only catch‑up rule for some high earners, requiring employers and participants to confirm details in the IRS guidance.

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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 workplace plans rise to $24,500 for 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan.
  • IRA contribution caps increase to $7,500 in 2026, and the IRA catch‑up for savers 50 and older goes to $1,100.
  • The 401(k) catch‑up limit for age 50+ increases to $8,000, while the special catch‑up for ages 60–63 stays $11,250.
  • Roth IRA income phase‑outs move to $153,000–$168,000 for single filers and $242,000–$252,000 for married filing jointly; traditional IRA deductibility phase‑outs also rise to $81,000–$91,000 (single covered), $129,000–$149,000 (MFJ covered) and $242,000–$252,000 (spouse covered).
  • Starting in 2026, certain higher‑earning participants must make catch‑up contributions on a Roth/after‑tax basis, with reports citing differing prior‑year wage thresholds, and other plan limits also increase such as the DC maximum to $72,000 and the annual compensation cap to $360,000.