You can save more for retirement this year thanks to an increase in the 401(k) contribution limit for 2026. The IRS adjusts contribution limits and other tax provisions for inflation each year.
High inflation as of late means this is the fourth year in a row that the adjustments have resulted in a higher 401(k) contribution limit. But what about your IRA?
Here’s how much you can contribute to retirement accounts in 2026.
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IRA 2026 contribution limit
The contribution limits for a traditional or Roth IRA increased last year and will increase again for 2026.
- You can contribute a maximum of $7,500 (up from $7,000 last year).
- Catch-up contributions for taxpayers 50 and older are also subject to cost-of-living adjustments, and these limits have also increased for 2026 to $1,100 ($8,600 total).
However, not everyone can make the maximum IRA contribution limits this year. You can only make the maximum contribution to your Roth IRA if your modified adjusted gross income (MAGI) is below the threshold set for the year.
- For 2026, single and head-of-household filers with a MAGI below $153,000 (up from $150,000 last year) can contribute the full $7,500 in 2026.
- The maximum contribution is reduced for these filers if their MAGI is between $153,000 and $168,000, and these taxpayers cannot contribute to a Roth IRA at all if their MAGI exceeds $168,000.
- For married couples filing jointly, the income phase-out range for 2026 is between $242,000 and $252,000 (up from between $236,000 and $246,000 last year).
- So, joint filers with a MAGI below $242,000 can contribute the full $7,500 for 2026, but these filers cannot contribute anything to an IRA with a MAGI greater than $252,000.
(Note: The above income limits do not apply to traditional IRAs.)
401(k) limit increase for 2026 contributions
Contribution limits for 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase by $1,000 for 2026. Eligible taxpayers can contribute $24,500 to these accounts in 2026 (up from $23,00 last year).
The contribution limit for SIMPLE plans increases to $17,000 this year (up from $16,500 last year). Similarly, participants of an applicable SIMPLE plan may be able to contribute a higher amount of $18,100 (up from $17,600 last year).
401(k) 2026 catch-up limit
There’s an increase in catch-up contribution limits for taxpayers 50 and older for 2026. These taxpayers will be able to contribute an additional $8,000 in 2026 ($32,500 total).
However, under SECURE 2.0, a higher catch-up contribution limit applies for those aged 60-63 beginning this year. (Participants in that age range may contribute an additional $11,250 instead of $8,000.) The total potential contribution amount for these taxpayers is $35,750.
For more information, see Kiplinger’s report: ‘Super Catch-Up’ Contribution for Ages 60-63.
The catch-up contribution limit for employees 50 and over who participate in SIMPLE plans also has increased for 2026, to $4,000 (certain applicable plans may have a contribution limit of $3,850).
But again, under a new change under SECURE 2.0, those who are 60, 61, 62, or 63 can contribute more to SIMPLE plans, ($5,250) for 2026.
IRA deduction phase-out thresholds for 2026
If you put money in a traditional IRA, you may be able to take a tax deduction for some or all of your contributions. (There is no deduction available for contributions to a Roth IRA.)
However, the deduction is gradually phased out if your income is above a certain amount.
Here are the phase-out ranges for 2026.
- For single taxpayers covered by a workplace retirement plan, the phase-out range is between $81,000 and $91,000 (up from between $79,000 and $89,000 last year).
- For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is between $129,000 and $149,000 (up from between $126,000 and $146,000 last year).
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is between $242,000 and $252,000 (up from between $236,000 and $246,000 last year).
If you are married and filing a separate return (and covered by a workplace retirement plan), the phase-out range remains between $0 and $10,000.
That’s because this limit is not subject to a cost-of-living adjustment.
Saver’s Credit income limit for 2026
Americans with lower and middle incomes who contribute to a retirement plan can claim the Saver’s Credit on their federal tax return, which could lower their tax bill.
However, not everyone qualifies. Here are the new income limits for claiming the Saver’s Credit in 2026.
- $80,500 for married couples filing jointly (up from $79,000 last year).
- $60,375 for heads of household (up from $59,250 last year).
- $40,250 for single and married taxpayers filing separately (up from $39,500 last year).
