IRS Announces New 401(k) Limits for 2026
In mid-November 2025, the IRS announced the new contribution limits for 401(k) plans and other retirement accounts that will come into effect in 2026.
For those who participate in 401(k), 403(b), 457 plans, and the federal Thrift Savings Plan, the annual contribution limit will increase from $23,500 to $24,500 for 2026. The catch-up contribution limit for those aged 50 and over will increase to $8,000, allowing those individuals to contribute up to $32,500 in 2026. A change made in the SECURE 2.0 Act of 2022 created a higher catch-up contribution limit for employees aged 60 through 63, allowing them to contribute an additional $11,250 instead of $8,000.
The annual contributions limit to IRAs will increase from $7,000 to $7,500. The catch-up contribution limit for those over the age of 50, which was previously amended under the SECURE 2.0 Act of 2022 to include a cost-of-living adjustment, will increase to $1,100.
Traditional IRA Limits
Taxpayers can only deduct contributions to traditional IRAs if they meet certain requirements. If they or their spouse are covered by a retirement plan at work during the year, the deduction may be reduced or phased out. The new phase-out ranges will be:
- Single taxpayers covered by a workplace retirement plan: the phase-out range will be between $81,000 and $91,000
- Married couple filing jointly where the spouse making the IRA contribution is covered by a workplace retirement plan: the phase-out range will be between $129,000 and $149,000
- For an IRA contributor who is not covered by a workplace retirement plan but is married to someone who is: the phase-out range will be between $242,000 and $252,000
- For a married individual filing separately and who is covered by a workplace retirement plan: the phase-out range remains between $0 and $10,000
Other Plan Limitations
The IRS also announced new phase-out ranges and limitations for Roth IRAs, Saver’s Credit, and SIMPLE retirement accounts for 2026:
- Roth IRAs: the income phase-out ranges will increase to $153,000-$168,000 for singles/heads of households, $242,000-$252,000 for married couples filing jointly, and $0-$10,000 for married individuals filing separately.
- Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate-income workers: the new increased income limits will be $80,500 for married couples filing jointly, $60,375 for heads of household, and $40,250 for singles and married individuals filing separately.
- SIMPLE retirement accounts: the contribution limit will increase to $17,000, and for certain applicable accounts, this increases to $18,100. The catch-up contribution for those aged 50 and older, in most cases, will increase to $4,000. The special catch-up limit provided for in the SECURE 2.0 Act for employees aged 60-63 will remain $5,250.
Contact Us
If you have questions about the information outlined above or need assistance with another tax or accounting matter, Klatzkin can help. For additional information call 609-890-9189 or click here to contact us. We look forward to speaking with you soon.