<\/p>\n <\/a><\/p>\n <\/p>\n <\/a><\/p>\n Boosting the contribution rate on a 401(k) or IRA plan, even by 1%, can make a big difference over 10 or 20 years, assuming the saver remains employed and making contributions the entire time.<\/p>\n The IRS also increased for 2026 the income ranges for determining whether someone is eligible to make deductible contributions to traditional IRAs, Roth IRAs or to claim the \u201csaver\u2019s credit,\u201d also known as the retirement savings contributions credit.<\/p>\n Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer\u2019s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income, the IRS said.<\/p>\n The IRS has outlined the details on these and other retirement-related changes for 2026 on its site.<\/a><\/p>\n The average balance on a 401(k) account was $137,800 in the second quarter, up 8% from a year earlier and 32% from the same quarter in 2020, according to Fidelity Investments.<\/p>\n<\/p>\n
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