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IRS Sets 2026 Retirement Limits, Lifts 401(k) Cap to $24,500

Higher limits arrive alongside a Roth catch-up shift that will require payroll and plan updates.

Overview

  • Workers can defer up to $24,500 to 401(k)s in 2026, with the age‑50 catch‑up rising to $8,000 and the $11,250 super catch‑up preserved for ages 60–63.
  • Traditional and Roth IRA limits increase to $7,500 in 2026, with the age‑50 catch‑up moving to $1,100 and updated income phase‑out ranges affecting eligibility.
  • Catch‑up contributions for employees 50+ with more than $150,000 in 2025 FICA wages must go to Roth accounts, using a prior‑year lookback to determine who is affected.
  • Plans may adopt the Roth‑only catch‑up approach in 2026 on a reasonable, good‑faith basis, with formal enforcement slated for 2027.
  • The overall annual additions cap for workplace plans rises to $72,000, and SIMPLE IRA/401(k) limits move to $17,000 with a $4,000 catch‑up for those 50 and older.