The IRS has unveiled significant increases to retirement savings limits for 2026, marking the latest in a series of annual adjustments designed to help Americans build stronger financial security for their golden years. These changes, announced in November 2025, affect millions of workers and retirees across the country.
401(k) Plans See Biggest Jump in Years
401(k) contribution limits are jumping to $24,500 for 2026, up from
$23,500 in 2025. This
$1,000 increase represents one of the more substantial year-over-year gains in recent memory, giving workers additional opportunities to boost their retirement savings through employer-sponsored plans.
For those aged 50 and older, the catch-up contribution limit is climbing to
$8,000, up from
$7,500 in 2025. This means eligible workers can now contribute a combined total of
$32,500 annually to their 401(k) plans—a meaningful boost for those in their final working years.
IRA Contributions Rise to $7,500
Individual Retirement Accounts are also getting a refresh, with contribution limits increasing to $7,500 for 2026, up from
$7,000 in 2025. Workers aged 50 and older can add an extra
$1,100 in catch-up contributions, bringing their total potential IRA savings to
$8,600 annually.
These increases apply to both traditional and Roth IRAs, giving savers flexibility in choosing the account type that best fits their tax situation.
Income Phase-Out Ranges Expand
The IRS also adjusted income thresholds that determine eligibility for certain retirement accounts.
For single taxpayers covered by a workplace retirement plan, the IRA deduction phase-out range is now $81,000 to $91,000, up from
$79,000 to
$89,000. Married couples filing jointly saw their phase-out range increase to
$129,000 to
$149,000, compared to
$126,000 to
$146,000 previously.
Roth IRA income limits also shifted upward. Single filers and heads of household now face phase-outs between
$153,000 and
$168,000, while married couples filing jointly see the range at
$242,000 to
$252,000.
SIMPLE Plans and SEP-IRAs Get Bumps Too
Small business owners and self-employed individuals aren't being left behind.
SIMPLE IRA and SIMPLE 401(k) deferral limits are increasing to $17,000 for 2026, up from
$16,500 in 2025. Catch-up contributions for those 50 and older jump to
$4,000, compared to
$3,500 previously.
For SEP-IRAs, the employer contribution limit is rising to
$72,000 in 2026, up from
$70,000 in 2025.
Social Security Wage Base Climbs
In related news, the Social Security Administration announced that the taxable wage base for 2026 will increase to
$184,500, up from
$176,100 in 2025. This adjustment affects how much workers and employers pay in Social Security taxes and influences benefit calculations for some retirement plans.
Health Savings Accounts Also Increase
While not technically retirement plans, Health Savings Accounts (HSAs) play an important role in retirement planning.
HSA contribution limits are rising to $4,400 for individual coverage and $8,750 for family coverage in 2026, up from
$4,300 and
$8,550 respectively in 2025.
What This Means for Your Retirement Strategy
These increases reflect the IRS's annual cost-of-living adjustments and provide workers with expanded opportunities to save for retirement. Financial advisors recommend reviewing your current contribution levels to determine whether you can take advantage of these higher limits, particularly if you're approaching retirement age.
The adjustments are especially significant for higher-income earners, whose ability to contribute to certain accounts was previously limited by lower phase-out thresholds. With the expanded income ranges, more workers may now qualify for tax-advantaged retirement savings options.
1.
Principal - Retirement Plans Compliance News November 20252.
IRS Newsroom - 401(k) Limit Increases to $24,500 for 20263.
IRS - Retirement Plans4.
Social Security Administration - Taxable Wage Base 2026
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5. 401(k) limit increases to $24500 for 2026, IRA limit increases to $7500
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8. Roth IRA conversion: 7 things to know - Fidelity Investments
9. IRA was hobbled by slow deployment, Biden staffers say in new report
10. Taking the Mystery Out of Retirement Planning
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12. [PDF] One Billion Served: IRS e-file Passes Major Milestone - Social Security
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14. Health Affairs: Leading Publication Of Health Policy Research ...
15. Direct Pay, Direct Impact: How IRA Changes Could Shape Local ...
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