The IRS has announced its updated contribution limits for retirement accounts in 2026, bringing meaningful increases that will allow Americans to save more toward their long-term financial goals. These adjustments, made annually to keep pace with inflation, affect 401(k)s, IRAs, and several other tax-advantaged savings vehicles. For individuals, families, and small-business owners who sponsor retirement plans, the changes offer expanded opportunities to build financial security.
In 2026, the maximum amount an employee can contribute to a 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan will rise to $24,500, up from $23,500 the year before. Savers aged 50 and older will also benefit from an increase in the catch-up contribution limit, which will move to $8,000. This means that individuals in that age group can contribute as much as $32,500 next year, offering a significant chance to accelerate retirement preparedness. Those aged 60 through 63—who qualify for an additional catch-up window under recent federal legislation—will continue to have access to a higher cap of $11,250.
IRAs are also receiving a lift. The standard contribution limit will increase to $7,500, while the catch-up contribution for those 50 and older will grow to $1,100. In addition to these dollar-amount changes, the IRS is also raising income thresholds that determine eligibility for deductible traditional IRA contributions, Roth IRA contributions, and the Saver’s Credit. These adjustments give more taxpayers the ability to take advantage of tax-favored retirement strategies that may not have been available to them previously.
For small-business owners, these updates signal an important moment to revisit workplace retirement plans and ensure they align with both employee needs and regulatory requirements. Higher limits may encourage participation, support retention, and help employees feel more confident about their financial futures. Individuals, meanwhile, should consider reviewing their savings strategies to determine whether these expanded limits allow them to contribute more—or qualify for deductions or Roth advantages they did not benefit from before.
The 2026 increases are more than incremental changes—they represent a tangible opportunity to strengthen retirement readiness at a time when savings pressure continues to rise. With higher ceilings across the board, now is an ideal moment for households and employers alike to reassess their financial plans and take full advantage of the improved landscape for long-term saving.