2026 IRA and 401(k) contribution limits

I wanted to pass along important information from the IRS that could impact how you plan your retirement savings for 2026. 

Here’s a summary of the 2026 contribution limits for tax-advantaged retirement accounts:

• The annual contribution limit for most 401(k), 403(b), 457, and federal Thrift Savings Plans will rise to $24,500 (up from $23,500).
  • Workers aged 50 and above can contribute an additional $8,000, for a total of $32,500.
  • The “super catch-up” for ages 60-63 stays at $11,250 under SECURE 2.0 rules. 
• IRA contribution limits are increasing to $7,500, with catch-up contributions (for individuals aged 50 and above) now at $1,100.

What you might consider doing now:

1. Review your current retirement savings rate and consider increasing it for 2026.
2. If you’re 50 or older, decide whether to take advantage of catch-up contributions.
3. If you’re self-employed, consider whether a SEP IRA or solo 401(k) update is in order.
4. Check IRA eligibility based on income and determine your 2026 contribution plan.

   Roth IRAs

   • In 2026, your modified adjusted gross income (MAGI) has to be under $153,000 for single filers or under $242,000 for joint filers to make the full Roth IRA contribution of $7,500 (or $8,600 if you're 50 or older).

   Traditional IRAs

   • For single taxpayers covered by a workplace retirement plan, your MAGI must be below $81,000 for the full deduction.
   • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, your MAGI must be below $129,000 for the full deduction.
   • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, your MAGI must be below $242,000 for the full deduction.
   • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly; $60,375 for heads of household; and $40,250 for singles and married individuals filing separately. This is an often overlooked tax credit for any retirement plan contributions.