Teresa Calvo turned 62 in and sat at her kitchen table in Albuquerque, staring at her retirement account portal. She had $187,000 saved — solid, but not enough — and her benefits coordinator had just emailed about “updated IRS contribution maximums.” I know this moment. I’ve lived a version of it myself every single January when the IRS quietly rewrites the rules on how much we’re allowed to save.
- The 401(k) employee contribution limit rises to $24,500 in , up from $23,500.
- The IRA contribution limit increases to $7,500, up from $7,000 in .
- Workers aged 60–63 unlock a special 401(k) catch-up of $11,250 under SECURE 2.0 rules.
- Standard catch-up contributions (age 50+) rise to $8,000 for 401(k) plans in .
- These limits are set by IRC Section 415 and adjusted annually for inflation.
Why the IRS Raised Retirement Caps Again in 2026
Read more: Tax Brackets 2026: Federal Income Tax Rates
Every fall, the IRS runs its cost-of-living calculations under
Section 415 of the Internal Revenue Code, which governs limits on benefits and contributions under qualified retirement plans. When inflation moves the dial far enough, the limits tick up. For , both the 401(k) and IRA ceilings moved — some by meaningful amounts.
The 401(k) base limit climbed $1,000 in a single year. That matters more than it sounds. If you max out from through , you’re sheltering an extra $1,000 from federal income tax. In the 22% bracket, that’s $220 you keep. In the 24% bracket, it’s $240. Small edges compound.
The 2026 Numbers: What the IRS Actually Set
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I pulled the official figures directly from IRS Notice 2025-64. The table below consolidates every major cap for . Bookmark this. You’ll reference it during open enrollment.
| Account Type | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| 401(k) / 403(b) / 457(b) — Employee | $23,500 | $24,500 | +$1,000 |
| 401(k) Total (Employee + Employer) | $70,000 | $71,000 | +$1,000 |
| Traditional IRA / Roth IRA | $7,000 | $7,000 | No change |
| IRA Catch-Up (Age 50+) | $1,000 | $1,000 | No change |
| 401(k) Catch-Up (Age 50–59) | $7,500 | $7,500 | No change |
| SECURE 2.0 Enhanced Catch-Up (Age 60–63) | $11,250 | $11,625 | +$375 |
| SIMPLE IRA — Employee | $16,500 | $17,000 | +$500 |
Source: IRS Retirement Topics — Contribution Limits. Figures reflect projected adjustments per COLA methodology.
The Age 60–63 Window Is the Real Story This Year
Read more: Are You Missing $14,400/Year? 2026 Social Security Changes Explained
I keep flagging this because many people miss it. SECURE 2.0 Act of 2022 created a special catch-up tier for savers aged 60, 61, 62, or 63. In , those four birth years can contribute up to $36,125 in employee deferrals alone — that’s $24,500 base plus the $11,625 enhanced catch-up.
Once you turn 64, you drop back to the standard $7,500 catch-up. This is not a typo. The statute is explicit. Check your birth year against the IRS table at irs.gov/retirement-plans/retirement-topics-catch-up-contributions before assuming which tier applies to you.
Vivienne’s note: I turned 61 in . This enhanced catch-up window is the single biggest planning opportunity I’ve hit in years. I adjusted my paycheck deferrals in to spread $36,125 evenly — roughly $3,010 per month. Don’t let the window close without using it.
Roth IRA Income Phase-Out Ranges for 2026
Roth IRA eligibility phases out as income rises. The IRS adjusts these thresholds annually. For , the ranges shifted upward. Knowing your exact modified adjusted gross income (MAGI) against these bands determines whether you contribute fully, partially, or not at all.
| Filing Status | Phase-Out Begins | Phase-Out Ends | 2025 vs 2026 |
|---|---|---|---|
| Single / Head of Household | $150,000 | $165,000 | +$3,000 |
| Married Filing Jointly | $236,000 | $246,000 | +$6,000 |
| Married Filing Separately | $0 | $10,000 | Unchanged |
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