Americans saving for retirement will be able to save more before taxes in 2026, the IRS said.
Next year, the annual employee deferral limit will increase to $24,500, up from $23,500 in 2025, for workplace plans, including 401(k)s, 403(b)s, government 457 plans and the federal government savings plan.
Contributions for participants age 50 and older will increase to $8,000 from $7,500, meaning their total contributions in 2026 is $32,500. For workers aged 60, 61, 62 and 63 who participate in these plans, their super catch-up contribution limit remains at $11,250, instead of $8,000 for regular contributions.
According to Vanguard’s annual How America Saves report, in 2024 only 14% of participants saved the maximum amount to receive a tax break equal to the 2023 However, the proportion of older participants eligible for and making a catch-up contribution increased to 16% from 15%. Super catch-up contributions only started in 2025.
We remind you that in 2026 contributions to catch up, those who earned at least $160,000 in the previous calendar year must make additional contributions to a Roth plan or make after-tax contributions, said Richard Pon, a San Francisco-based CPA. However, employer plans are not required to offer catch-up contributions or Roth plans, he said.
Employers without a Roth plan can “prohibit high-paid participants from making catch-up contributions,” he said.
in 2026 the annual IRA contribution limit will increase from $500 to $7,500. The IRS contribution limit for 50-year-olds will increase to $1,100 from $1,000 in 2025 after a cost-of-living adjustment, the IRS said.
Yes, income fluctuates to determine eligibility for making deductible contributions to a traditional IRA, contributing to a Roth IRA and claiming the savings credit, all of which increased in 2026, the IRS said.
Phase-out intervals for 2026 are shown below.
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For single taxpayers covered by a retirement plan, the phase-out range increased to $81,000-$91,000, and in 2025 – $79,000 to $89,000.
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If the IRA-contributing spouse is enrolled in a workplace retirement plan, the phase-out range for married couples increased to $129,000-$149,000, and in 2025 – from $126,000 to $146,000.
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For an IRA contributor not covered by a retirement plan who is married to a covered individual, the phaseout range is $242,000 to $252,000 from $236,000 to $246,000 in 2025.
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For a married individual filing a separate return covered by a workplace retirement plan, the phase-out interval does not apply to the annual cost-of-living adjustment and remains between $0 and $10,000.
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For a married individual filing a separate return covered by a workplace retirement plan, the phase-out interval does not apply to the annual cost-of-living adjustment and remains between $0 and $10,000.
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The income reduction range for taxpayers contributing to a Roth IRA will increase from $153,000 to $168,000, and from $150,000 to $165,000 for singles and heads of household. For married couples filing jointly, the income phase-out range increased from $236,000 to $246,000 to $242,000 to $252,000. For a married individual filing a separate return who contributes to a Roth IRA, the phase-out range does not apply to the annual cost-of-living adjustment and remains between $0 and $10,000.
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The Saver’s Credit income limit for low- and moderate-income workers is $80,500 for married couples filing jointly, up from $79,000 in 2025; $60,375 for heads of households, up from $59,250 in 2025; and $40,250 for single and married filers filing separately, up from $39,500 in 2025.