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IRS Sets New 2026 Retirement Account Contribution Limits

11/13/2025

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Summary

IRS Announces Retirement Limits

The Internal Revenue Service (IRS) announced 2026 retirement account limits, including a 401(k) deferral cap of $24,500.
Catch-up contributions for ages 50+ rise to $8,000.
People aged 60 to 63 can contribute an additional $11,250, unchanged from 2025.
The IRA contribution limit rises to $7,500, with catch-up contributions for older investors at $1,100, while these changes apply to 401(k)s, 403(b)s, most 457 plans, and IRAs.

Summary

IRS Raises Retirement Caps

The Internal Revenue Service announced 2026 retirement limits, raising the 401(k) cap to $24,500 and the catch-up to $8,000, for a $32,500 limit for those 50+.
The IRS sets the age-60-to-63 limit at $35,750 and adjusts thresholds for IRA contributions and the Saver’s Credit.
The IRS caps IRA contributions at $7,500, with catch-up rising to $1,100.
Starting in 2026, high earners over $145,000 must make catch-up contributions in after-tax dollars.

History

Historical Context

The 2001 amendments to the Internal Revenue Code, particularly the Economic Growth and Tax Relief Reconciliation Act, introduced significant changes to retirement savings, including 401(k) contribution limits and catch-up provisions for those aged 50 and older. These reforms aimed to enhance retirement security amid rising life expectancies and economic pressures, reflecting ongoing adjustments to meet the needs of American workers.

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IRS Announces Retirement Limits

The Internal Revenue Service (IRS) announced 2026 retirement account limits, including a 401(k) deferral cap of $24,500.
Catch-up contributions for ages 50+ rise to $8,000.
People aged 60 to 63 can contribute an additional $11,250, unchanged from 2025.
The IRA contribution limit rises to $7,500, with catch-up contributions for older investors at $1,100, while these changes apply to 401(k)s, 403(b)s, most 457 plans, and IRAs.

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