Did you know the amount you can contribute to your retirement accounts is going up for 2026? The IRS announced that the 401(k) contribution limit increased to $24,500, up from $23,500 in 2025. If you are 50 or older, you can take advantage of catch-up contributions too, which increased to $8,000, allowing you to contribute a total of $32,500. And for those between 60 and 63, the higher catch-up contribution remains $11,250.
IRAs are also seeing an increase. The annual contribution limit rises to $7,500, up from $7,000. Catch-up contributions for those 50 and older went up to $1,100. These changes give you a bigger opportunity to save more and take advantage of tax benefits.
Phase-out income ranges for deducting contributions to a traditional IRA, contributing to a Roth IRA, and claiming the Saver’s Credit are all increasing. For example, single taxpayers covered by a workplace retirement plan now have the phase out range between $81,000 and $91,000. Married couples with the spouse participating in a workplace plan have the phase out range between $129,000 and $149,000. If you are not covered by a workplace plan but your spouse is, the phase-out range is now $242,000 to $252,000.
For Roth IRAs, singles and heads of household have a new income phase-out range of $153,000 to $168,000. Married couples filing jointly phase out between $242,000 and $252,000. The Saver’s Credit also increases, with married couples filing jointly eligible up to $80,500, heads of household up to $60,375, and singles up to $40,250.
SIMPLE retirement accounts also see increases. The general contribution limit is now $17,000 and higher for certain accounts at $18,100. Catch-up contributions for employees 50 and older are generally $4,000, and for certain plans and ages 60 to 63, the limit goes up to $5,250.
These changes mean more of your money can retire and grow tax-deferred. You can see all the details in Notice 2025-67 on IRS.gov to plan for 2026 and make the most of these increased limits. Start thinking about how you can maximize your contributions this year and take full advantage of the higher limits.
If you have questions about any of this information, be sure to speak with your financial advisor. If you don’t have one and would like a referral to someone I know and trust, reach out to us at 310-534-5577 or contact@abandp.com.
