The Internal Revenue Service (IRS) has increased the annual contribution limit for 401(k) retirement plans in 2026.
IRS announced in a news statement last year that it has boosted the amount individuals can contribute to their 401(k)s to $24,500 for next year, up from $23,500 in 2025, the greatest increase in two years.
The IRS also announced additional individual retirement account savings limits, higher income criteria for Roth IRA contributions, and 2026 catch-up contribution restrictions for individuals 50 and older, in addition to 401(k) limits.
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New IRS limits for 401(K) contributions in 2026
As per the updated rules, employees participating in 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan can contribute up to $24,500 in 2026, up from $23,500 in 2025, according to the IRS announcement.
Workers aged 50 and older can contribute an additional $8,000 “catch-up” contribution, raising their total possible contribution to $32,500 annually.
A special provision created under the SECURE 2.0 Act allows people aged 60 to 63 to contribute even more through a “super catch-up” limit of $11,250. This change is for traditional and safe harbor 401(k) plans.
Similarly, for SIMPLE 401(k) plans, the catch-up contribution limit for people aged 60 to 63 has been raised to $5,250.
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Other retirement account changes for 2026
The IRS has announced that they have increased the annual contribution cap for Individual Retirement Accounts (IRAs) from $7,000 this year to $7,500 in 2026. The annual cost-of-living adjustment (COLA) of $100 will be added to the IRA “catch-up” contribution cap, raising it to $1,100 in 2026.
Income thresholds determining eligibility for Roth IRA contributions, traditional IRA deductions and the Saver’s Credit have also been increased for 2026, allowing more taxpayers to qualify for tax benefits tied to retirement savings.
For low- and moderate-income workers, the Saver’s Credit (also called the Retirement Savings Contributions Credit) has an income cap of $80,500 for married couples filing jointly. Its $60,375 for heads of household and $40,250 for singles and married individuals filing separately
