FILE-A sign marks the front of the Internal Revenue Service (IRS) headquarters building on January 30, 2024, in Washington, DC. (Photo by J. David Ake/Getty Images)
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The Internal Revenue Service has announced new 401K and individual retirement account contribution limits that take effect next year.
In 2026, the amount individuals can contribute to their 401K will increase to $24,500, up from 23,500 this year, according to an IRS release on Thursday.
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The agency also issued guidance for all cost‑of‑living adjustments impacting dollar limitations for pension plans and other retirement-related items for 2026.
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401K and IRA contribution limits for 2026
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Why you should care:
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The annual contribution limit for workers who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $24,500, up from $23,500 for 2025.
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For employees 50 years old and older who participate in most 401(k), 403(b), governmental 457 plans, the catch-up contribution limit for these accounts will rise to $8,000 in 2026. Additionally, the limit on annual contributions to an IRA has been increased to $7,500 from $7,000.
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Meanwhile, there’s an IRA catch-up contribution for people 50 and older, and it includes a cost-of-living adjustment of $1,100, up from $1,000 in 2025.
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Income phase-out ranges for Roth IRAs, IRAs, and Saver’s Credit
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The IRS explains on its website that taxpayers can deduct contributions to a traditional IRA if they meet certain requirements.
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IRS officials state that during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, which is contingent on filing status and income.
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Below is a breakdown of next year’s phase out ranges, according to the IRS.
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- For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025.
- The IRS notes that married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range rises between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
- According to the agency, for IRA contributors not covered by a workplace retirement plan and who are married to someone who is covered, the phase-out is between $242,000 and $252,000, up from between $236,000 and $246,000 in the current year.
- A married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
- The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025.
- According to the IRS, for married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
- And the phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
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The agency has also raised the income limit for the Saver’s Credit for low- and moderate-income workers, and it is listed below:
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- The amount is $80,500 for married couples filing jointly, up from $79,000 for 2025.
- For heads of household, it is $60,375, up from $59,250 for 2025.
- And the amount is $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.
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The Source: Information for this story was provided by an IRS release. This story was reported from Washington, D.C.