Updated November 2025, based on IRS Notice 2025-67 (IR-2025-111)
The IRS has released the official 2026 cost-of-living adjustments for retirement plans – and this year brings meaningful increases across IRAs, employer plans, SIMPLE accounts, and key income phaseouts. These higher limits give savers more room to build tax advantaged wealth and create stronger retirement strategies.
Below is a breakdown of every major update for 2026, what changed from 2025, and how these limits may affect your planning.
401(k) Plan Contribution Limits
Employees participating in workplace retirement plans will see a higher standard contribution limit in 2026:
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New 2026 limit: $24,500
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2025 limit: $23,500
Catch Up Contributions (Age 50+)
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Standard age 50+ catch up: $8,000 (up from $7,500 in 2025)
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Total possible contribution (50+): $32,500
Special Catch Up for Ages 60–63 (SECURE 2.0)
For participants ages 60, 61, 62, or 63, a higher catch up applies:
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2026 special catch up: $11,250
(unchanged from 2025 due to indexing rules)
This allows eligible savers to contribute significantly more during their peak earning years.
Traditional & Roth IRA Contribution Limits
IRA Contribution Limit
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2026 limit: $7,500
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2025 limit: $7,000
IRA Catch Up Contribution (Age 50+)
Under SECURE 2.0, the catch up is now inflation-adjusted.
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2026 catch up: $1,100 (up from $1,000 in 2025)
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Total possible IRA contribution for 50+: $8,600
Income Phaseouts for Traditional IRA Deductibility
If you or your spouse are covered by a workplace retirement plan, the ability to deduct a traditional IRA contribution phases out based on income.
2026 Phase Out Ranges
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Single, covered by workplace plan:
$81,000–$91,000 (up from $79,000–$89,000) -
Married filing jointly, contributor covered:
$129,000–$149,000 (up from $126,000–$146,000) -
Married filing jointly, contributor not covered but spouse is:
$242,000–$252,000 (up from $236,000–$246,000) -
Married filing separately:
Still $0–$10,000 (not indexed for inflation)
Roth IRA Income Phase Outs
The ability to contribute directly to a Roth IRA also depends on income.
2026 Roth IRA Phase Out Ranges
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Single / Head of Household:
$153,000–$168,000 (up from $150,000–$165,000) -
Married filing jointly:
$242,000–$252,000 (up from $236,000–$246,000) -
Married filing separately:
Unchanged at $0–$10,000
Saver’s Credit Income Limits (2026)
The Saver’s Credit (Retirement Savings Contributions Credit) rewards low- to moderate-income savers with a tax credit.
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Married filing jointly: up to $80,500 (previously $79,000)
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Head of household: up to $60,375 (previously $59,250)
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Single / married filing separately: up to $40,250 (previously $39,500)
SIMPLE IRA Contribution Limits
SIMPLE accounts also received cost-of-living increases.
2026 SIMPLE Limits
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Standard SIMPLE limit: $17,000 (up from $16,500)
Under SECURE 2.0, “applicable” SIMPLE plans (larger-employer SIMPLEs) have higher limits:
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Applicable SIMPLE limit: $18,100 (up from $17,600)
SIMPLE Catch Up Contributions (Age 50+)
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Standard SIMPLE catch up: $4,000 (up from $3,500)
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Applicable SIMPLE catch up: $3,850 (unchanged)
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Special age 60–63 SIMPLE catch up: $5,250 (unchanged)
What These Changes Mean for Investors
Higher ceilings = more tax advantaged compounding
Every increase in contribution limits means more of your income can grow tax deferred or tax free.
IRA phase outs continue to favor married high earners
Joint filers saw some of the largest increases, expanding planning opportunities for backdoor Roth strategies.
SECURE 2.0 provisions matter more in 2026
The 60–63 catch up windows remain high, creating a powerful four year period for retirement acceleration.
Self directed investors get more room to deploy capital
Whether you’re investing through real estate, private lending, notes, or private equity, higher contribution limits mean more capital can enter your self directed IRA each year.
Planning Ahead for 2026
If you want to review your retirement strategy, update beneficiaries, or confirm your 2026 contributions, we’re here to help.