“Making Money” host Charles Payne discusses 401(k) savings with Rebecca Walser, president of Walser Wealth Management, and what it says about Americans’ retirement.
The IRS has revealed the contribution limit changes for popular retirement plans, including 401(k) plans and IRAs.
Americans who contribute to 401(k) and 403(b) plans, as well as government 457 plans and the federal government’s Thrift Savings Plan, will see their contribution limits rise to $24,500 in 2026 — up from $23,500 in 2025 — the IRS announced in November.
The IRA contribution limit will also increase in the new year, from $7,000 in 2025 to $7,500 in 2026.
People aged 50 and over who want to expand their work pension savings using catch-up contributions to IRAs, they will be able to contribute an additional $1,100 to their IRA starting in 2026 – up from an additional $1,000 in 2025. That change came about as a result of a provision of the SECURE 2.0 Act that requires an annual cost-of-living adjustment.
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Savers putting money into their retirement accounts will generally see higher limits in 2026. (iStock)
For employees aged 50 and over who participate 401(k)403(b), government 457 plans and the federal Thrift Savings Plan will increase their catch-up contribution limit to $8,000 in 2026, up from $7,500 in 2025.
This means employees who qualify catch-up contributions and participation in such plans would see their total contribution limit increase to $32,500 starting in 2026.
A policy change from the SECURE 2.0 Act also created a higher catch-up contribution limit for workers ages 60, 61, 62 and 63 who participate in these plans and have a catch-up limit of $11,250 – instead of the $8,000 for younger savers – that will remain unchanged in 2026.
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The IRS considers updates to the contribution limits annually. (Kayla Bartkowski/Getty Images)
Taxpayers can deduct contributions be converted to a traditional IRA under certain circumstances, with the amount of the deduction phasing out based on income and filing status, as well as whether the taxpayer is covered by a workplace retirement plan.
For single taxpayers covered by a workplace retirement plan, the phase-out margin will increase to between $81,000 and $91,000 in 2026 – up from $79,000 to $89,000 in 2025.
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Contribution limits vary based on the retirement plans a saver uses, as well as their income level and tax filing status. (iStock)
For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range increases to between $129,000 and $149,000.
The phase-out range for individuals who contribute to a Roth IRA will rise to between $153,000 and $168,000 for singles and heads of household by 2026, an increase of $3,000 per person compared to this year. For married filers, the phase-out margin will increase next year to between $242,000 and $252,000 – an increase of $6,000 per person this year.
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Lisa Featherngill, national director of strategic wealth and business advisory at Comerica Wealth Management, said the “new 2026 retirement plan limits give people more room to save, which is especially helpful as retirement becomes longer and more expensive.”
