The IRS stated that the amount individuals can contribute to their 401(k) plans in 2026 has risen to $24,500, increasing from $23,500 for 2025.

Additionally, the IRS also released technical guidance regarding all cost‑of‑living adjustments impacting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67, as posted the same day on IRS.gov.

According to the IRS, the annual contribution limit for employees who take part in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan rose to $24,500, increasing from $23,500 for 2025.

The limit on annual contributions to an IRA has risen to $7,500 from $7,000. The IRA catch‑up contribution limit for individuals aged 50 and above changed under 2022's SECURE 2.0 Act to cover an annual cost‑of‑living adjustment has risen to $1,100. The limit was increased from $1,000 for 2025.

The catch-up contribution limit generally applying for employees aged 50 and over who take part in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan has risen to $8,000, rising from $7,500 for 2025.

Thus, participants in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, beginning in 2026.

Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62, and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 indicated above.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2026.

Taxpayers are able to deduct contributions to a traditional IRA if certain conditions are met. If in the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction might be reduced, or phased out, until it is gone. This would depend on filing status and income.

But, if neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction are not applicable. 

Here are 2026's phase‑out ranges:

• For single taxpayers covered by a retirement plan at work, the phase-out range has risen to between $81,000 and $91,000, increasing from between $79,000 and $89,000 for 2025.

• For married couples who are filing jointly, if the spouse making the IRA contribution is covered by a retirement plan at work, the phase-out range will be increased to between $129,000 and $149,000, rising from between $126,000 and $146,000 for 2025.

• For an IRA contributor not covered by a retirement plan at work and is married to someone who is covered, the phase-out range has risen to between $242,000 and $252,000, increasing from between $236,000 and $246,000 for 2025.

• For a married individual filing a separate return who has coverage from a retirement plan at work, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.