Overview
- Employee deferral limits for 401(k), 403(b), most 457 plans and the Thrift Savings Plan rise to $24,500 for 2026.
- Catch-up contributions increase to $8,000 for savers 50 and older, with an alternative $11,250 catch-up available to workers aged 60–63, lifting potential totals to $32,500 or $35,750.
- IRA contribution caps move to $7,500 in 2026, with the age‑50‑plus catch‑up set at $1,100.
- Roth IRA income phase-outs increase to $153,000–$168,000 for single/head‑of‑household filers and $242,000–$252,000 for married filing jointly; traditional IRA deduction ranges rise to $81,000–$91,000 (single) and $129,000–$149,000 (married filing jointly), and Saver’s Credit income limits climb to $40,250 (single), $60,375 (head of household) and $80,500 (married filing jointly).
- The announcement followed the shutdown‑ending funding bill and other 2026 inflation updates, as data show only 14% of workers maxed out 401(k)s in 2024.