The IRS is boosting 401(k) contribution limits for 2026.
Starting next year, employees can contribute up to $24,500 into their 401(k) and 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees, the IRS announced Nov. 13. That’s a $1,000 jump from the $23,500 limit in 2025.
The catch-up contribution limit for employees ages 50 and older who participate in 401(k) and 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will rise to $8,000 from $7,500. Those aged 60 to 63 can instead save an extra $11,250, based on changes due to SECURE Act 2.0.
The limit on total employer-plus-employee contributions to defined contribution plans will increase to $72,000 in 2026, up from $70,000 in 2025.
The announcement comes just hours after President Donald Trump signed into law a bill ending the longest federal government shutdown. The annual retirement limits are usually announced in late October or early November but were delayed due to the shutdown.
Although the announcement comes after most organizations have already started open enrollment for next year, employers will still want to convey the news to employees now and throughout the next year. Employees can usually make changes to their retirement account contribution rates year-round, though some employers place limits on how often plan participants can make an adjustment.
Even with the annual limits rising, most employees are a long way from reaching retirement goals. Among U.S. workers who have retirement savings, 25% said they have just one year or less of their current annual income put aside for their post-work years, according to Northwestern Mutual.
Other Limits
The IRS also announced other limits for 2026. Effective Jan. 1, the maximum annual benefit that may be provided through a defined benefit plan is $290,000, up from $280,000 in 2025.
Meanwhile, the annual IRA contribution limit will increase to $7,500 in 2026 from $7,000. The IRA catch‑up contribution limit for individuals aged 50 and older will rise to $1,100 for 2026, up from $1,000 in 2025.
For individual taxpayers who are covered by a workplace retirement plan, the traditional IRA contribution tax deduction phaseout range will rise to between $81,000 and $91,000 for 2026, an increase from the 2025 range of $79,000 to $89,000.
In 2026, the Saver’s Credit, also known as the Retirement Savings Contributions Credit, for low-income and moderate-income workers will rise to $40,250 for individuals (up from $39,500 in 2025), $80,500 for married couples filing jointly (up from $79,000), and $60,375 for heads of household (up from $59,250).
Details on these and other retirement-related cost-of-living adjustments for 2026 are in Notice 2025-67.
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