IRS Announces 2026 Retirement Plan Limits
From the IRS: 2026 Retirement Plan & Contribution Amounts
The IRS has issued its 2026 inflation-adjusted contribution amounts for retirement plans in Notice 2025-67. Many retirement-plan-related limits will increase for 2026. Thus, depending on the type of plan you have, you may have significant opportunities to increase your retirement savings.
| Type of Limitation | 2026 Limit | 2025 Limit |
|---|---|---|
| Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans | $24,500 | $23,500 |
| Annual benefit limit for defined benefit plans | $290,000 | $280,000 |
| Contributions to defined contribution plans | $72,000 | $70,000 |
| Contributions to SIMPLE IRA Plans | $17,000 | $16,500 |
| Contributions to traditional and Roth IRAs | $7,500 | $7,000 |
| Catch-up contributions to 401(k), 403(b) and 457 plans for those age 50 or older | $8,000 | $7,500 |
| Catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63* | $11,250 | $11,250 |
| Catch-up contributions to SIMPLE plans for those age 50 or older | $4,000 | $3,500 |
| Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63* | $5,250 | $5,250 |
| Catch-up contributions to IRAs for those age 50 or older | $1,100 | $1,000 |
| Compensation for benefit purposes for qualified plans and SEPs | $360,000 | $350,000 |
| Minimum compensation for SEP coverage | $800 | $750 |
| Highly compensated employee threshold | $160,000 | $160,000 |
IRA Modified Adjusted Gross Income (MAGI) Phaseouts
Your MAGI may reduce or eliminate your ability to take advantage of IRA tax benefits. The phaseout ranges for 2026 have increased again to account for inflation.
Traditional IRAs
Deductibility of contributions applies if you (or your spouse) are covered by a workplace retirement plan.
- Married filing jointly (Participating spouse): For a spouse who participates in a workplace plan, the 2026 phaseout range increases to $129,000–$149,000 (up from $126,000–$146,000 in 2025).
- Married filing jointly (Non-participating spouse): For a spouse who doesn’t participate but is married to someone who does, the 2026 phaseout range increases to $242,000–$252,000 (up from $236,000–$246,000 in 2025).
- Single/Head of Household: For those participating in an employer-sponsored plan, the 2026 range increases to $81,000–$91,000 (up from $79,000–$89,000 in 2025).
Note: If your MAGI exceeds these limits, you can still make nondeductible traditional IRA contributions up to the annual limit ($7,500 in 2026, plus the $1,100 catch-up if age 50+).
Roth IRAs
Workplace plan participation does not affect Roth eligibility, but MAGI limits still apply to your ability to contribute:
-
Married filing jointly: The 2026 phaseout range increases to $242,000–$252,000 (up from $236,000–$246,000 in 2025).
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Single/Head of Household: The 2026 phaseout range increases to $153,000–$168,000 (up from $150,000–$165,000 in 2025).
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Married filing separately: The range remains $0–$10,000 (this is not adjusted for inflation).
(Note: Married taxpayers filing separately are subject to much lower phaseout ranges for traditional and Roth IRAs.)
Key 2026 Update: Roth Catch-up Requirement
Beginning in 2026, a new SECURE 2.0 rule requires that catch-up contributions for certain high earners must be made on a Roth (after-tax) basis. This applies to employees whose prior-year wages (2025) from the same employer exceeded $150,000. If you fall into this category, you can no longer make catch-up contributions to a traditional 401(k) or 403(b) on a pre-tax basis; they must be directed to a Roth account.
Disclaimer: This article provides general information and should not be considered professional financial or tax advice. Please consult with a qualified CPA or financial advisor for guidance specific to your individual business needs.
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Adam manages a variety of tax and accounting engagements for business clients in numerous industries, including manufacturing, real estate, construction, alternative investments, and professional services. He has experience in federal tax, multi-state corporate income and franchise tax, and municipal income tax. In addition to his tax compliance background, Adam specializes in preparing and managing complex partnership engagements.