IRS Raises Limits for Retirement and Tax-Advantaged Accounts in 2026

Expanded Retirement Savings Opportunities Begin in 2026

The Internal Revenue Service (IRS) has released its updated contribution limits for retirement plans in 2026, providing savers and investors with expanded opportunities to strengthen their long-term financial security. These adjustments, part of the IRS’s annual cost-of-living updates, apply to a broad range of tax-advantaged accounts, including 401(k)s, IRAs, SIMPLE IRAs, and others.

For individuals focused on building a stable retirement foundation, these changes are more than routine updates. They reflect a continued effort to align savings opportunities with inflation and evolving financial needs. Whether you are contributing through an employer-sponsored plan or managing your own retirement accounts, the 2026 limits offer greater flexibility to save more, reduce taxable income, and take advantage of long-term compounding.

what changed for 2026

The IRS’s 2026 updates introduce meaningful increases across several major retirement savings vehicles, aimed at helping individuals keep pace with inflation and enhance their long-term financial planning. These changes affect contribution limits for workplace retirement plans, individual retirement accounts, and income thresholds for tax credits offering broader access and higher savings potential for a wide range of earners.

Let’s take a closer look at the most significant updates:

401(k), 403(b), 457 Plans & Thrift Savings Plan

Employees will be able to contribute up to $24,500 to their workplace retirement plans in 2026, an increase of $1,000 from the 2025 limit of $23,500.
Individuals aged 50 and older can make an additional catch-up contribution of $8,000, up from $7,500.
Those aged 60 to 63 remain eligible for a special catch-up contribution of $11,250, which is unchanged from the previous year.

IRA Contribution Limits

The annual contribution limit for IRAs will increase to $7,500, up from $7,000 in 2025.
The catch-up contribution for individuals aged 50 and older will rise to $1,100, compared to $1,000 in 2025.

SIMPLE IRA Limits

The contribution limit for SIMPLE retirement accounts will increase to $17,000, up from $16,500 in 2025.
Individuals aged 50 and older can contribute an additional $4,000, up from $3,500.
The special catch-up contribution for those aged 60 to 63 will remain at $5,250.

SAVERS CREDIT INCOME LIMITS

In 2026, the income limit to qualify for the Saver’s Credit will rise to $80,500 for married couples filing jointly, up from $76,500 in 2025.
For heads of household, the limit will increase to $60,375, compared to $57,375 in 2025.
For single filers and others, the limit will be $40,250, up from $38,250.

What It Means for You and Your Future

These increases offer a valuable opportunity to reassess your retirement strategy and potentially boost your contributions. Whether you're early in your career or nearing retirement, taking full advantage of these expanded limits can help strengthen your long-term financial security.

For more information, visit the IRS’s official announcement.