2026 retirement plan limits increase as IRS increases 401k, IRA contributions
‘Making Money’ host Charles Payne discusses 401(k) savings with Walser Wealth Management president Rebecca Walser and what she has to say about America’s retirement.
I The IRS has set a contribution limit changes to popular retirement plans, including 401(k) plans and IRAs.
Americans who contribute to 401(k) and 403(b) plans, as well as federal 457 plans and the federal Thrift Savings Plan, will see their contribution limit rise to $24,500 in 2026 — up from $23,500 in 2025 — the IRS announced in November.
The IRA contribution limit also increases in the new year, rising to $7,500 in 2026 from $7,000 in 2025.
People aged 50 and above who want to improve their fitness retirement income through participating contributions to IRAs they will be able to contribute an additional $1,100 to their IRA starting in 2026 – up from an additional $1,000 in 2025. That change happened because of a provision of the SECURE 2.0 Act that requires an annual cost-of-living adjustment.
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Savers who invest in retirement accounts generally will see higher limits in 2026. (Stock)
For workers aged 50 and over who participate 401(k).
That means they are not qualified workers holding contributions and participating in such programs will see their total limit rise to $32,500 from 2026.
The policy change from the SECURE 2.0 Act also created a maximum contribution limit for workers ages 60, 61, 62 and 63 participating in those plans with a maximum contribution limit of $11,250 — up from $8,000 for younger savers — which will remain unchanged through 2026.
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The IRS considers updates to the contribution limits every year. (Kayla Bartkowski/Getty Images)
Taxpayers know it pull donations made in a traditional IRA under certain circumstances, and the amount of deductions under the exit clause based on income and filing status, and whether the taxpayer paid into a workplace retirement plan.
For single taxpayers covered by a workplace retirement plan, the exit threshold will increase to between $81,000 and $91,000 in 2026 — an increase from $79,000 to $89,000 in 2025.
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Contribution limits vary based on the retirement plans used by the saver and the level of income and tax filing status. (Stock)
For married couples filing jointly, if the spouse making the IRA contribution is covered by an employer’s retirement plan, the exit threshold can increase to between $129,000 and $149,000.
The output range of individuals contributing to A Roth IRA will rise by 2026 to between $153,000 and $168,000 for singles and heads of households, up $3,000 each from this year. For married filers, the exit range will increase to between $242,000 and $252,000 next year — an increase of $6,000 each this year.
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Lisa Featherngill, national director of strategic wealth and business advisor at Comerica Wealth Management, said “the new 2026 retirement plan limits give people more room to save, which is especially useful as retirement takes longer and becomes more expensive.”
