Particle.news
Download on the App Store
10 ARTICLES
·
1h ago

IRS Sets 2026 Retirement-Savings Limits: 401(k) Cap to $24,500, IRA to $7,500

Inflation indexing under Secure 2.0 delivers larger catch-ups plus wider Roth eligibility for 2026.

Image
FILE - A sign is displayed outside the Internal Revenue Service building May 4, 2021, in Washington. (AP Photo/Patrick Semansky, File)
Image
Image

Overview

  • The employee deferral cap applies to 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan.
  • Savers 50 or older can add $8,000 in 2026, with an alternative $11,250 catch-up for ages 60 to 63 under Secure 2.0.
  • IRA contributions rise to $7,500, with a $1,100 catch-up for those 50 and older.
  • Roth IRA income phaseouts shift to $153,000–$168,000 for single filers and $242,000–$252,000 for joint filers, with married filing separately fixed at $0–$10,000.
  • The release followed a funding bill signed by President Donald Trump that ended the federal shutdown, as advisors highlighted trade-offs between lump-sum funding and dollar-cost averaging.