Saving for retirement gets more flexible in 2026 thanks to the updated retirement plan limits from the Internal Revenue Service (IRS). Here’s a breakdown of the changes: 

 
Higher Contribution Limits 

• 401(k) and Other Similar Plans 

• The annual contribution limit for workplace plans like 401(k) and 403(b), and most governmental plans rises to $24,500 for 2026, from $23,500 in 2025. 

• Catch-up contributions for individuals aged 50 and up also increased to $8,000, from $7,500 in 2025. This gives our older contributors a maximum contribution limit of $32,500 in 2026. 

• Individuals aged 60 to 63 get a special catch-up contribution limit of $11,250, instead of $8,000. 

• Individual Retirement Accounts (IRA) 

• The limit for Individual retirement accounts (IRA) also rose to $7,500 in 2026, from $7,000 in 2025. 

• Catch-up contributions for individuals aged 50 and up increased to $1,100 from $1,000 in 2025. 

Higher Income Phase-Out Ranges 

• Traditional IRA Deduction Phase Out Ranges 

More people can fully deduct their IRA contributions since the IRS also updated the MAGI (Modified Adjusted Gross Income) phase-out ranges for 2026. These ranges affect whether taxpayers can deduct their traditional IRA contributions.  

• If the contributor is covered by a workplace retirement plan: 

• Single Filers: Deduction is reduced for MAGI between $81,000 – $91,000, up from between $79000 – $89,000 in 2025. 

• Married Filing Jointly: Deduction is reduced for MAGI between $129,000 – $149,000, up from between $126,000 – $146,000 for 2025. 

• If the contributor is not covered, but the spouse is covered by a workplace retirement plan: 

• Married Filing Jointly: Deduction is reduced for MAGI between $242,000 – $252,000, up from between $236,000 and $246,000 for 2025. 

• Roth IRA Contributions Phase Out Ranges 

The IRS also increased the MAGI phase-out ranges for Roth IRA contributions providing high-income earners with more room to build tax-free retirement savings. 

• Single Filers or Head of Household: Contribution is limited for MAGI between $153,000 – $168,000, up from between $150,000 and $165,000 for 2025. 

• Married Filing Jointly: Contribution is reduced for MAGI between $242,000 – $252,000, up from between $236,000 and $246,000 for 2025. 

These retirement updates give everyone, especially the business owners, self-employed individuals, and those nearing retirement, more room to prepare for the future and reduce taxes at the same time.  

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