The IRS has released updated retirement contribution limits for 2026, bringing good news for savers looking to maximize their tax-advantaged retirement accounts. Here's what you need to know about the changes and how they might affect your retirement strategy.
Higher Contribution Limits Across the Board
For 2026, the standard 401(k) contribution limit increases to $24,500, up from $23,500 in 2025. This $1,000 boost gives workers additional room to shelter income from taxes while building their retirement nest egg.
IRA contribution limits are also rising. The annual limit increases to $7,500 from $7,000, giving savers an extra $500 in tax-advantaged space. This applies to both traditional and Roth IRAs.
Lisa Featherngill, national director of strategic wealth and business advisory at Comerica Wealth Management, noted that the "new 2026 retirement plan limits give people more room to save, which is especially helpful as retirement gets longer and more expensive."
Catch-Up Contributions Get a Boost
Workers aged 50 and older can contribute even more through catch-up contributions. For 2026, the 401(k) catch-up limit rises to $8,000, up from $7,500 in 2025. Combined with the standard limit, this means workers 50 and older can contribute up to $32,500 to their 401(k) plans.
The IRA catch-up contribution also increases to $1,100 from $1,000, allowing those 50 and older to contribute a total of $8,600 to their IRAs.
Super Catch-Up for Ages 60-63
One of the most significant changes introduced by SECURE 2.0 is the "super catch-up" provision for workers aged 60 to 63. For 2026, these individuals can make catch-up contributions of $11,250 instead of the standard $8,000. This means workers in this age range can potentially contribute up to $35,750 to their 401(k) plans, providing a meaningful opportunity to accelerate retirement savings during peak earning years.
New Roth Requirement for High Earners
Perhaps the most important change for 2026 involves catch-up contributions for higher-income workers. Beginning January 1, 2026, participants who earned more than $150,000 in FICA wages during 2025 must make their catch-up contributions on a Roth (after-tax) basis.
This means if you're a high earner age 50 or older, your catch-up contributions will no longer reduce your current taxable income. Instead, you'll pay taxes on these contributions now but enjoy tax-free growth and withdrawals in retirement.
The requirement applies to 401(k), 403(b), and governmental 457(b) plans. SIMPLE IRAs and certain other plans are excluded. Importantly, if your employer's plan doesn't currently offer a Roth option, you won't be able to make catch-up contributions at all until the plan is amended.
Updated Income Phase-Out Ranges
For 2026, the Roth IRA contribution phase-out range increases to between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married couples filing jointly.
Traditional IRA deduction phase-outs for single taxpayers covered by a workplace plan rise to between $81,000 and $91,000. For married couples where the contributing spouse is covered by a workplace plan, the range increases to between $129,000 and $149,000.
Practical Steps for 2026
To make the most of these changes, consider reviewing your contribution rate early in the year to take advantage of higher limits. If you're approaching ages 60-63, the super catch-up provision offers a valuable opportunity to boost your savings. High earners should verify their employer's plan offers Roth contributions to ensure they can continue making catch-up contributions under the new rules.
Sources: Internal Revenue Service, Fidelity, Kiplinger, Principal Financial