Americans saving for retirement will be able to put more money away next year, thanks to new limits set by the Internal Revenue Service.
Starting in 2026, employees can contribute up to $24,500 to their 401(k) plans—an increase of $1,000 from 2025.
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.
Individual retirement accounts (IRAs) are getting a bump too, with the contribution limit rising from $7,000 to $7,500.
Older workers, in particular, stand to benefit from higher catch-up contributions.
Those aged 50 and older can add an extra $8,000 to their 401(k), bringing their total contribution to $32,500.
Workers between 60 and 63 get an even bigger boost, with an $11,250 catch-up limit—allowing total contributions of $35,750 a year.
The IRS has also raised the income limits for deductible IRA contributions, ROTH IRA contributions, and the Saver’s Credit, meaning more people can take advantage of these tax benefits.
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–$89,000 in 2025.
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–$146,000.
With these changes, the IRS is giving Americans both more money and more flexibility to grow their retirement savings—just in time to prepare for the years ahead.
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