Retirement Plan Contribution Limits for 2026

Published on December 8, 2025

The Internal Revenue Service has announced the updated 2026 limits on IRAs and qualified (employer-sponsored) retirement plans. At a glance:

• Annual contributions to Traditional and Roth IRAs will go up by $500 for a total of $7,500. For individuals 50 and older, the catch-up contribution limit for IRAs will be an additional $1,100 (up $100 from 2025).
• The contribution limit for 401(k) plans will increase by $1,000 to $24,500. This new amount will also apply to 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan. For employees aged 50 and up who participate in these plans, the catch-up contribution will increase by $500 to $8,000 next calendar year.

Higher catch-ups for employees in “pre-retirement” years

A provision in SECURE 2.0 gives workers who are 60, 61, 62, and 63 years old, and who participate in a qualified retirement plan, a catch-up contribution bonus. However, in 2026, that limit will remain the same at $11,250. After age 63, the “regular” catch-up contribution limit applies for participants of employer-sponsored plans.

If you participate in a workplace retirement plan, we recommend you check with your plan sponsor for details and how these updates will affect you.

Deductibility and eligibility for IRA account owners

Depending on one’s income range, an individual may be able to deduct the contribution amounts made to a Traditional IRA (not a Roth IRA) based on your modified gross adjusted income; check with your financial advisor or tax advisor to see if you can deduct all or a portion of your annual contributions.

NOTE: If you have a health savings account, you can deduct annual contributions (which grow tax-free and are withdrawn tax-free).

There are also income ranges that determine one’s eligibility to contribute to a Roth IRA or SIMPLE IRA and to claim the Saver’s Credit. These will all increase in 2026.

• ROTH IRA: The new income phase-out range will be between $153,000 and $168,000 (singles and heads of household), representing a $3,000 increase from 2025. That income range will be between $242,000 and $252,000 for married couples filing jointly. These figures are $6,000 more than the 2025 amounts.
  • A married individual filing a separate return is not subject to an annual cost-of-living adjustment; that remains between $0 and $10,000 for taxpayers who contribute to a Roth IRA.
• SIMPLE IRA: In general, individuals will be able to contribute $500 more to a SIMPLE IRA next year, a maximum of $17,000.
  • For employees aged 50 and up, the catch-up contribution for most SIMPLE plans will increase to $4,000. As with Traditional and Roth IRAs, there is a separate catch-up contribution limit that was enabled in the SECURE Act 2.0 for those aged 60-63; that amount is $5,250 (no change).
  • For certain applicable SIMPLE retirement accounts (also based on a change in SECURE Act 2.0), some individuals will be able to contribute $18,100 and the catch-up limit for employees aged 50+ is $3,850 (no change from 2025).
• SAVER’S CREDIT: This is a plan for low-income and moderate-income workers. Here are the income limits to qualify to contribute:
  • $80,500 for married couples filing jointly (up $500 from the 2025 limit of $80,000)
  • For heads of household, it will increase to $60,375 (up $1,125 from 2025)
  • For singles and marrieds filing separately it will rise to $40,250 (up $750 from the 2025 income limit of $39,500)

Covered by a plan at work? Or your spouse?

If you or your spouse is covered by a retirement plan at work (even if you also have an IRA), the deduction may be reduced or phased out until it is eliminated. This depends on your filing status and income. Your trusted advisor will be able to guide you on this and provide you with the relevant numbers regarding phase out.

Have questions about self-directed IRAs?

At Next Generation Trust Company, we administer all types of self-directed IRAs—Traditional, Roth, SIMPLE, and SEP, as well as HSAs (health savings accounts), and Coverdell education savings accounts (CESAs). We also administer solo 401(k) plans for business owners. Our team is available to answer your questions about the many types of alternative assets these plans allow to diversify your portfolio and help you boost your retirement (or other) savings. Contact us at NewAccounts@NextGenerationTrust.com or 888.857.8058, or sign up for our newsletter to stay in the loop about our informative webinars and industry updates.