IRS raises 401(k) limits by largest amount in two years. What to know
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The annual contribution limit for employees who participate in eligible plans is increased to $24,500, up from $23,500 for 2025. Photo by Tasos Katopodis/Getty Images
The IRS has announced its new 401(k) contribution limits for 2026.
The big picture: The agency said in a news release on Thursday that it has increased the amount individuals can contribute to their 401(k)s — $24,500 for next year, up from $23,500 in 2025, the largest increase in two years.
Driving the news: In addition to 401(k) limits, the IRS also revealed 2026 catch-up contribution limits for those 50 and older, new individual retirement account savings limits, and higher income thresholds for Roth IRA contributions.
The full list of changes can be found on the IRS website.
Here's what to know:
2026 401(k) contribution limits
The 401(k) contribution limit jumps $1,000 for 2026, up to $24,500. The limit had only increased by $500 in 2024 and 2025.
- The limit applies to 401(k)s, 403(b)s and most 457 plans, the agency said, along with the federal Thrift Savings Plan.
2026 catch-up contribution limits
The 401(k) catch-up contribution limit rises to $8,000 for those 50 and older, up from $7,500 in 2025.
- The limit for those between 60 and 63 years old remains unchanged, however, at $11,250, based on the 2024 Secure 2.0 Act.
- Both figures are on top of the $24,500 deferral limit for 2026.
The IRA catch‑up contribution limit for individuals aged 50 and over is increased to $1,100, up from $1,000 for 2025.
New IRA savings limits
The limit on annual contributions to an IRA rises to $7,500 from $7,000.
Income thresholds for Roth IRA
- The income "phase-out" range for those making contributions to a Roth IRA increases to between $153,000 and $168,000 for singles and heads of household, up from $150,000 to $165,000 for 2025.
- For married couples filing jointly, the income phase-out range increases to between $242,000 and $252,000, up from $236,000 to $246,000 for 2025.
- The range for a married individual filing a separate return who makes contributions to a Roth IRA "is not subject to an annual cost-of-living adjustment," according to the agency, and remains between $0 and $10,000.
Saver's credit
The IRS also increased the income limit for the Saver's Credit (AKA the Retirement Savings Contributions Credit) for low- and moderate-income workers. The limit is now:
- $80,500 for married couples filing jointly, up from $79,000 for 2025.
- $60,375 for heads of household, up from $59,250 for 2025.
- $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.
