Here Are the New 401(k) and IRA Contribution Limits for 2026

Workers making $150,000 and above must make their 401(k) catch-up contributions to post-tax Roth accounts.  (Dreamstime)

Key Points

• The IRS increased 401(k) contribution limits for 2026 to $24,500 for those under 50 and $32,500 for those 50 and over.
• IRA contribution limits rose to $7,500 for 2026, with an additional $1,100 in catch-up contributions for those 50 and over.
• Workers earning $150,000 or more must make 401(k) catch-up contributions to post-tax Roth accounts starting in 2026.

Retirement investors can sock away more next year, as the Internal Revenue Service has boosted the limits on contributions to 401(k) and individual retirement accounts to factor in inflation.

Workers under 50 years old can contribute $24,500 to their 401(k) and similar plans in 2026, up from $23,500 this year, the IRS said on Thursday. Those 50 and over can contribute an additional $8,000 in so-called catch-up contributions, up $500 from this year, bringing their maximum to $32,500.

Employees ages 60 to 63 have a higher catch-up contribution limit of $11,250, the same as this year.

A big change for 2026 is that workers making $150,000 and above must make their 401(k) catch-up contributions to post-tax Roth accounts.

The limit on IRA contributions has risen to $7,500 for 2026, from $7,000 this year, with workers 50 and over allowed an additional $1,100 in catch-up contributions. That limit applies to a person’s IRA accounts in aggregate; savers can’t exceed it no matter how many accounts they own.

Contributions to traditional IRAs are tax-deductible under certain conditions. Those who don’t have access to a 401(k) or similar plan at work can deduct their full allowed amount, while those who do are subject to income limits for deductibility.

Single taxpayers covered by a workplace retirement plan can’t deduct anything at incomes above $91,000, up from $89,000 for 2025. For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the ceiling for partial deductibility has risen to $149,000, from $146,000 for 2025.

Contributions to Roth IRA accounts are also subject to income limits. The income phase-out range—the window in which allowed contributions notch down to zero— has risen to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025. For married couples filing jointly, the range is between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.

The income limit for the Saver’s Credit, which offers low and moderate-income workers an extra incentive to contribute to retirement plans, is $80,500 for married couples filing jointly, up from $79,000 for 2025, It is $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.

Write to Elizabeth O’Brien at elizabeth.obrien@barrons.com