IRS Announces Changes to Retirement Plans for 2026

CONTRIBUTION AND INCOME LIMITS FOR 2026

 

The Internal Revenue Service (IRS) announced the 2026 retirement plan adjustments. Click here to view the full list of changes. Here's a summary of the provisions that may impact you:


1

CONTRIBUTION LIMITS

  • $24,500: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $24,500. This is $1,000 more than the 2025 limits. The additional catch-up contribution limit for employees aged 50 and over increased to $8,000 from $7,500 in 2025. For employees aged 60, 61, 62, and 63 who participate in these plans, the catch-up contribution is $11,250.
  • $7,500: The contribution limit to traditional and Roth IRAs increased to $7,500 from $7,000 in 2025. The additional IRA catch-up contribution limit for individuals aged 50 and over increased to $1,100 from $1,000 in 2025.

 

2

ROTH IRA INCOME PHASE-OUT RANGES FOR 2026:

  • $153,000 to $168,000: Single taxpayers and heads of household.
  • $242,000 - $252,000: Married, filing jointly.

 

3

HELPFUL LINKS ABOUT RETIREMENT PLANS

  • CLICK HERE to view a chart that outlines the difference between Traditional and Roth IRAs
  • CLICK HERE to view the rules for Required Minimum Distributions (RMDs)

 


PLEASE NOTE: THIS OVERVIEW IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE ABOUT YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS NOTICE 2025-67.

NUMBER OF THE WEEK
$24,500

That's how much an individual can contribute in 2026 to their 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan.

Source: HomeQB
 

 

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