IRS Announces Increased Retirement Contribution Limits for 2026
The IRS has raised contribution limits for 401(k)s and IRAs for 2026, allowing individuals to save more for retirement, including higher catch-up contributions for those aged 50 and older.
Overview
- The IRS is increasing the maximum contribution limits for various retirement plans, including 401(k)s and IRAs, effective for the 2026 tax year.
- The annual 401(k) contribution limit will rise to $24,500 in 2026, marking a $1,000 increase from the current limit of $23,500.
- For IRAs, the annual contribution limit will increase to $7,500 in 2026, up from the current $7,000, providing more savings potential.
- Individuals aged 50 and older will see their catch-up contribution limit for 401(k)s increase to $8,000 in 2026, bringing their total possible contribution to $32,500.
- IRA catch-up contributions for those 50 and older will increase by $1,100, while high earners with FICA wages over $145,000 will face income tax on catch-up contributions, and IRA eligibility income ranges have been adjusted.
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Analysis
Center-leaning sources present this story neutrally, focusing on the factual dissemination of the 2026 IRS retirement savings limits. They avoid loaded language or selective emphasis, instead providing clear, objective information on contribution caps, catch-up rules, and income phase-out ranges for various retirement accounts, ensuring readers receive unbiased financial updates.
"Americans saving for retirement will have a chance to save more before taxes in 2026, the IRS said."
USA TODAY"The IRS is boosting retirement plan contribution limits in 2026, allowing Americans to put more money in their tax-preferred 401(k) and individual retirement accounts."
CBS NewsArticles (4)
FAQ
The 401(k) contribution limit will increase to $24,500 in 2026, which is a $1,000 increase from the 2025 limit of $23,500.
The annual IRA contribution limit will increase to $7,500 in 2026, up from $7,000 in 2025.
Catch-up contributions for 401(k) plans will rise to $8,000, allowing total contributions up to $32,500. IRA catch-up contributions will increase by $1,100 for those aged 50 and older.
Yes, catch-up contributions for high earners with FICA wages over $145,000 will be subject to income tax, and IRA eligibility income ranges have been updated for 2026.
The 2026 increases continue the trend of annual cost-of-living adjustments, with 401(k) limits rising roughly $1,000, consistent with prior years’ gradual inflation indexing since 2006.
History
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