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3h ago

IRS Sets 2026 Retirement Savings Caps: 401(k) Limit to $24,500, IRA to $7,500

Inflation indexing drives the higher caps, with SECURE 2.0 now requiring some older high earners’ catch-ups to be Roth.

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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 401(k), 403(b), most 457 plans and the Thrift Savings Plan will rise to $24,500 in 2026, up from $23,500 in 2025.
  • The catch-up limit for participants 50 and older will increase to $8,000, while the SECURE 2.0 “super catch-up” for ages 60–63 remains $11,250.
  • IRA contribution caps will move to $7,500 in 2026, and the IRA catch-up amount for those 50 and older will adjust to $1,100.
  • Income ranges used to determine eligibility for deductible traditional IRA contributions, Roth IRA contributions and the Saver’s Credit will shift higher for 2026.
  • Catch-up contributions by certain higher‑income employees must be made as Roth (after‑tax) contributions under SECURE 2.0, though employer plan design and historically low maxing rates mean relatively few workers may use the full limits.