The Internal Revenue Service has announced increased contribution limits for retirement accounts in 2026, giving savers more room to build their nest eggs. Whether you're just starting your retirement journey or approaching your golden years, understanding these new limits can help you maximize your tax-advantaged savings.
401(k) Contributions Rise to $24,500
The headline change for 2026 is the increase in 401(k) contribution limits. Workers can now defer up to $24,500 of their salary into 401(k), 403(b), and most 457 plans—up from $23,500 in 2025. The combined employee and employer contribution limit has also risen to $72,000.
For workers aged 50 and older, the catch-up contribution limit has increased to $8,000, up from $7,500 in 2025. This means older workers can contribute up to $32,500 total.
The "Super" Catch-Up for Ages 60-63
One of the most significant changes introduced by SECURE 2.0 is the enhanced catch-up contribution for workers between ages 60 and 63. These individuals can contribute an additional $11,250 instead of the standard $8,000 catch-up—bringing their total possible 401(k) contribution to $35,750 for 2026.
This provision recognizes that many workers need to accelerate their savings in the final years before retirement.
IRA Limits Increase for First Time Since 2024
Traditional and Roth IRA contribution limits have risen to $7,500 for 2026, up from $7,000 in 2025. The IRA catch-up contribution for those 50 and older also received its first cost-of-living adjustment, increasing from $1,000 to $1,100. This means workers 50 and older can contribute up to $8,600 to their IRAs this year.
The income phase-out range for Roth IRA contributions has also increased. Single filers can make full contributions if their modified adjusted gross income is below $153,000, with partial contributions allowed up to $168,000. Married couples filing jointly have a phase-out range of $242,000 to $252,000.
Important Change for High Earners
Beginning in 2026, workers who earned more than $150,000 in Social Security wages during the prior year must make all catch-up contributions on a Roth (after-tax) basis. While this means no upfront tax deduction on catch-up amounts, it also means tax-free withdrawals in retirement.
Social Security COLA: A 2.8% Boost
Beyond contribution limits, retirees are seeing a 2.8% cost-of-living adjustment to Social Security benefits in 2026. The average retiree will receive approximately $2,071 per month, up from $2,015 in 2025—an increase of about $56 monthly.
However, Medicare Part B premiums have increased to $202.90 per month, offsetting some of this gain for many beneficiaries.
Practical Steps to Maximize Your 2026 Savings
Review your contribution rate: With higher limits available, consider increasing your payroll deductions. Even a 1% increase can compound significantly over time.
Take full advantage of catch-up contributions: If you're 50 or older, make sure you're utilizing the additional contribution room. Those aged 60-63 should especially note the enhanced "super" catch-up opportunity.
Consider Roth contributions: If you expect to be in a higher tax bracket in retirement, Roth contributions—whether to a Roth 401(k) or Roth IRA—can provide tax-free income later.
Diversify with alternative assets: Some investors are also looking beyond traditional stocks and bonds. Gold IRAs, which allow precious metals in retirement accounts, have gained attention as gold prices have risen significantly in recent years—though these accounts come with additional complexity and fees.
Sources: Internal Revenue Service, Fidelity, Charles Schwab, Social Security Administration