The IRS released updated retirement plan contribution limits for 2026 following inflation-related cost-of-living adjustments.

Key Increases for Employer-Sponsored Plans

For 2026, employees participating in 401(k), 403(b), most governmental 457 plans, and the federal Thrift Savings Plan can contribute up to $24,500, up from $23,500 in 2025.

The standard catch-up contribution for people aged 50 and older increases to $8,000, up from $7,500, allowing eligible participants to contribute up to $32,500 in 2026.

A separate, higher catch-up amount continues to apply for people aged 60 through 63. For 2026, that amount remains $11,250.

IRA Contribution and Catch-Up Adjustments

The annual limit for IRA contributions rises to $7,500, up from $7,000.

The IRA catch-up amount for taxpayers age 50 and older, which is now indexed for inflation under SECURE 2.0, increases to $1,100 for 2026.

Updated Income Phase-Out Ranges for Traditional IRA Deductions

Traditional IRA deductibility depends on income and whether either spouse is covered by a workplace retirement plan.

The 2026 phase-out ranges are:

• • Single filers covered by a workplace plan: $81,000 to $91,000
  • Married filing jointly, spouse making the contribution is covered: $129,000 to $149,000
  • Married filing jointly, contributor not covered but spouse is: $242,000 to $252,000
  • Married filing separately: remains at $0 to $10,000

Roth IRA Income Limits for 2026

• • Singles and heads of household: $153,000 to $168,000
  • Married filing jointly: $242,000 to $252,000
  • Married filing separately: unchanged at $0 to $10,000

Saver’s Credit Income Limits

The adjusted income caps for the Retirement Savings Contributions Credit are:

• • Married filing jointly: $80,500
  • Heads of household: $60,375
  • Singles and married filing separately: $40,250

SIMPLE Plan Contribution Changes

For 2026, the general SIMPLE contribution limit rises to $17,000, up from $16,500.

Certain SIMPLE plans eligible for enhancements under SECURE 2.0 allow contributions up to $18,100.

Catch-up contributions for SIMPLE plans adjust as follows:

• • Standard catch-up for age 50 and older: $4,000
  • Alternative catch-up for specific SECURE 2.0 eligible SIMPLE plans: $3,850
  • Enhanced catch-up for ages 60 through 63: $5,250

Additional Technical Guidance

All cost-of-living adjustments that apply to qualified retirement plans for 2026, including pension-related limits, are outlined in IRS Notice 2025-67.

Important Notice

The information above is intended to provide general insight into recent IRS updates and should not be viewed as tax or legal advice. It is not meant to serve as the only source of guidance when evaluating business matters or making decisions that could affect your financial position. Every situation is unique. You should speak with your accountant or legal advisor to review your specific circumstances and determine the best course of action. abip is available to assist you and help you interpret how these changes may affect your firm or your clients.