2026 Retirement Contribution Limits Explained
Retirement contribution figures are easier to understand when you separate the account limit from the income rules that may affect eligibility. The IRS's announcement for tax year 2026 covers workplace plans, IRAs, catch-up contributions, the Saver's Credit and SIMPLE accounts. Each figure answers a different question. Start by identifying the type of account, then look at age and filing status where they matter.
Workplace Plans: The Employee Contribution Limit
For 2026, the annual employee contribution limit for 401(k), 403(b), governmental 457 plans and the federal government's Thrift Savings Plan is $24,500. The IRS announced an increase from $23,500 for 2025. Keep the tax year attached to the figure when comparing information or discussing your plan, so that an earlier year's amount is not mistaken for the 2026 limit.
This is a contribution ceiling, not a suggested savings amount for every household. Use the account name as your starting point when reading the announcement. The IRS groups these workplace plans together for this standard employee limit, while describing IRA and SIMPLE limits separately. That distinction helps you avoid applying a familiar number to the wrong kind of account.
Catch-Up Contributions Depend on Age
In most of these workplace plans, participants aged 50 and over generally have an $8,000 catch-up contribution limit for 2026, up from $7,500 for 2025. The IRS says those participants generally can contribute up to $32,500 in 2026. The catch-up amount is additional to the standard employee limit, rather than a replacement for it.
Under SECURE 2.0, a higher catch-up limit applies to employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, that catch-up limit remains $11,250 instead of the general $8,000 amount. Keep this age group separate when comparing figures: the announcement does not give everyone aged 50 and over the higher catch-up allowance.
IRAs Have a Separate Limit
The annual IRA contribution limit rises to $7,500 for 2026, from $7,000. The IRA catch-up contribution limit for individuals aged 50 and over rises to $1,100, from $1,000 for 2025. The IRS explains that SECURE 2.0 amended the IRA catch-up limit to include an annual cost-of-living adjustment.
Do not carry the workplace plan's catch-up figure across to an IRA. The announcement gives different amounts for these accounts. Also separate the contribution limit from the questions of whether you can contribute to a Roth IRA or deduct a traditional IRA contribution. An account's dollar limit alone does not resolve those income-related questions.
Roth Eligibility and Traditional IRA Deductions
For Roth IRA contributions in 2026, the income phase-out range is $153,000-$168,000 for singles and heads of household. For married couples filing jointly, it is $242,000-$252,000. The range for a married individual filing separately remains $0-$10,000. A phase-out range describes a gradual restriction, so reading only the upper number misses part of the rule.
For traditional IRAs, the IRS says contributions can be deductible if certain conditions are met. If you or your spouse were covered by a retirement plan at work during the year, the deduction may be reduced or eliminated depending on income and filing status. Treat the deduction question as a separate eligibility check rather than assuming that a contribution automatically produces a deduction.
The Saver's Credit: Match the Filing Status
The Saver's Credit, also called the Retirement Savings Contributions Credit, has 2026 income limits of $80,500 for married couples filing jointly, $60,375 for heads of household, and $40,250 for singles and married individuals filing separately. The IRS describes this credit as applying to low- and moderate-income workers.
These are income limits for the credit, not additional contribution allowances. When reading the figures, pair your filing status with its stated limit and keep that question apart from the account's contribution ceiling. The announcement does not turn the income threshold into a promise about the credit any particular person will receive.
SIMPLE Accounts Have Their Own Figures
The general SIMPLE retirement account contribution limit is $17,000 for 2026. Under SECURE 2.0, certain applicable SIMPLE accounts have a higher $18,100 amount. Most SIMPLE plans have a general catch-up limit of $4,000 for employees aged 50 and over; certain applicable plans have a different $3,850 catch-up limit. For participants aged 60, 61, 62 and 63, the higher SIMPLE catch-up limit remains $5,250.
Because the announcement distinguishes most plans from certain applicable plans, confirm which category applies before selecting a figure. The largest amount in the list should not be treated as available in every SIMPLE account.
Where the Figures Come From
The IRS announcement dated November 13, 2025, identified as IR-2025-111, sets out these 2026 figures. It also identifies Notice 2025-67 as the technical guidance for retirement-related cost-of-living adjustments. Use the announcement to orient yourself, then check the relevant conditions for your account. These figures are general information, not a personal recommendation about contributions or tax choices.