{"id":147129,"date":"2025-11-21T22:33:07","date_gmt":"2025-11-21T22:33:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/147129\/"},"modified":"2025-11-21T22:33:07","modified_gmt":"2025-11-21T22:33:07","slug":"irs-makes-major-changes-to-401ks-and-iras-what-you-should-know","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/147129\/","title":{"rendered":"IRS makes major changes to 401(k)s and IRAs: What you should know"},"content":{"rendered":"

Americans saving for retirement will be able to put more money away next year, thanks to new limits set by the Internal Revenue Service.<\/a><\/p>\n

Starting in 2026, employees can contribute up to $24,500 to their 401(k) plans\u2014an increase of $1,000 from 2025. <\/p>\n

The raise also applies to 403(b) plans, governmental 457 plans, and the federal Thrift Savings Plan, giving workers across the board more room to save.<\/p>\n

Individual retirement accounts (IRAs) are getting a bump too, with the contribution limit rising from $7,000 to $7,500.<\/p>\n

Older workers, in particular, stand to benefit from higher catch-up contributions.<\/p>\n

Read more: IRS scam: Feds sue tax \u2018company\u2019 claiming it was \u2018pocketing millions,\u2019 threatening taxpayers<\/a><\/p>\n

Those aged 50 and older can add an extra $8,000 to their 401(k), bringing their total contribution to $32,500. <\/p>\n

Workers between 60 and 63 get an even bigger boost, with an $11,250 catch-up limit\u2014allowing total contributions of $35,750 a year.<\/p>\n

The IRS has also raised the income limits for deductible IRA contributions, ROTH IRA contributions, and the Saver\u2019s Credit, meaning more people can take advantage of these tax benefits. <\/p>\n

Single taxpayers covered by a workplace retirement plan can now make deductible contributions if their income is between $81,000 and $91,000, up from $79,000\u2013$89,000 in 2025. <\/p>\n

Married couples filing jointly, where the contributing spouse is covered by a workplace plan, now have a phase-out range of $129,000 to $149,000, up from $126,000\u2013$146,000.<\/p>\n

With these changes, the IRS is giving Americans both more money and more flexibility to grow their retirement savings\u2014just in time to prepare for the years ahead.<\/p>\n

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement<\/a> and agree that your clicks, interactions, and personal information may be collected, recorded, and\/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Americans saving for retirement will be able to put more money away next year, thanks to new limits…\n","protected":false},"author":2,"featured_media":147130,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":{"0":"post-147129","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/147129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=147129"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/147129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/147130"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=147129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=147129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=147129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}