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IRS Sets 2026 Retirement Contribution Limits, Lifting 401(k) and IRA Caps

Cost-of-living updates take effect alongside SECURE 2.0 provisions requiring some higher earners’ catch-ups to be Roth.

Overview

  • Employee deferral limits for 401(k), 403(b), most 457 plans and the Thrift Savings Plan rise to $24,500 in 2026, up from $23,500.
  • IRA contribution caps increase to $7,500 next year, and the IRA catch-up for savers 50 and older is indexed to $1,100.
  • The standard catch-up limit for workplace plans moves to $8,000 for age 50+, while the special age 60–63 catch-up holds at $11,250.
  • Eligibility ranges shift higher: deductible IRA phase-outs include $81,000–$91,000 for single filers covered at work and $129,000–$149,000 for married joint filers; Roth IRA phase-outs rise to $153,000–$168,000 for singles and $242,000–$252,000 for joint filers.
  • Additional plan caps adjust for 2026, including a $360,000 annual compensation limit and a $72,000 DC plan maximum, as data show only about 14% of participants maxed out 401(k)s in 2024.