Summary
The Internal Revenue Service (IRS) announced new retirement contribution limits for 2026, allowing people to save more money in accounts like 401(k) plans. The contribution limit for 401(k) plans will increase to $24,500, with higher catch-up contributions for those aged 50 and older. Additionally, the IRS is raising the income thresholds for Roth IRA eligibility.
Key Facts
- The maximum contribution to 401(k) plans will increase to $24,500 in 2026.
- People aged 50 and over can contribute an additional $8,000 to their 401(k) plans.
- The catch-up contribution for individual retirement accounts (IRAs) for those 50 and older will increase to $1,100.
- The standard IRA contribution limit will rise to $7,500 in 2026.
- Income phase-out ranges for Roth IRA eligibility will adjust, starting at $153,000 for singles and $242,000 for married couples filing jointly.
- The IRS raised income limits for the Saver’s Credit, with the maximum income for eligibility now set at $80,500 for married couples filing jointly.
- These changes aim to help people save more money for retirement as costs rise.
