Americans who contribute to 401(k) and 403(b) plans, as well as governmental 457 plans and the federal government’s Thrift Savings Plan, will see their contribution limit rise to $24,500 in 2026 \u2013 an increase from $23,500 in 2025 \u2013 the IRS announced on Thursday.<\/p>\n
The IRA contribution limit is also rising next year, increasing to $7,500 in 2026 from $7,000 this year.<\/p>\n
People aged 50 and up who are looking to ramp up their\u00a0retirement savings<\/a> through the use of catch-up contributions to IRAs will be able to contribute an extra $1,100 to their IRA starting next year \u2013 up from an additional $1,000 this year. That change came about due to a provision of the SECURE 2.0 Act requiring an annual cost-of-living adjustment.<\/p>\n IRS REVEALS 2026 TAX ADJUSTMENTS WITH CHANGES FROM ‘BIG, BEAUTIFUL BILL’<\/a><\/p>\n Savers putting money into retirement accounts will generally see higher limits in 2026. (iStock)<\/p>\n For workers aged 50 and up who participate in\u00a0401(k)<\/a>, 403(b), government 457 plans and the federal Thrift Savings Plan will have their catch-up contribution limit increase to $8,000 next year, an increase from $7,500 in 2025.\u00a0<\/p>\n That means workers who are eligible for\u00a0catch-up contributions<\/a> and participate in such plans would see their total contribution limit rise to $32,500 starting in 2026.\u00a0<\/p>\n A policy change from the SECURE 2.0 Act also created a higher catch-up contribution limit for workers aged 60, 61, 62 and 63 who participate in those plans have a catch-up limit of $11,250 \u2013 rather than the $8,000 for younger savers \u2013 which will remain unchanged in 2026.<\/p>\n SOCIAL SECURITY COMMISSIONER FRANK BISIGNANO NAMED IRS CEO<\/a><\/p>\n The IRS considers updates to contribution limits on an annual basis. (Kayla Bartkowski\/Getty Images)<\/p>\n Taxpayers are able to\u00a0deduct contributions<\/a> made to a traditional IRA under certain circumstances, with the amount of the deduction subject to a phase out based on income and filing status, as well as whether the taxpayer is covered by a workplace retirement plan.<\/p>\n For single taxpayers who are covered by a workplace retirement plan, the phase-out range will increase to between $81,000 and $91,000 in 2026 \u2013 an increase from $79,000 to $89,000 this year.<\/p>\n AMERICANS UNDERPREPARED FOR LONGER LIFESPANS AND EXTENDED RETIREMENT YEARS, STUDY FINDS<\/a><\/p>\n Contribution limits vary based on the retirement plans a saver is using as well as their income level and tax filing status. (iStock)<\/p>\n For married couples filing jointly, if the spouse who makes the IRA contribution is covered by a workplace retirement plan, the phase-out range would increase to between $129,000 and $149,000.<\/p>\n The phase-out range for individuals contributing to a\u00a0Roth IRA<\/a> will rise in 2026 to between $153,000 and $168,000 for singles and heads of household, up $3,000 each compared with this year. For married filers, the phase-out range will rise to between $242,000 and $252,000 next year \u2013 an increase of $6,000 each this year.<\/p>\n![\"Savings](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Retirement-savings-jar.jpg\")
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