IRS Raises Retirement Contribution Limits for 2026

Yesterday the IRS announced the annual contribution limits for retirement accounts for 2026. 401(k) contribution limits have increased to $24,500 for 2026; an increase of $1,000 from 2025. 

Qualified plan contribution limits usually grow in step with the annual inflation rate for each year’s third quarter; this year’s was 4.26%, rounded down to the nearest $500 increment.

Catch-up contributions for those over aged 50+ increased to $8,000 from $7,500, adding up to a total allowed annual contribution of $32,500 for qualified retirement plans in 2026.

The SECURE 2.0 Act included a provision allowing for an enhanced or “super catch-up” contribution that allows those aged 60 through 63 to contribute up to $11,250 as a catch-up contribution, this is unchanged from 2025. Those aged 60-63 are allowed to contribute up to a total of $35,750 to their retirement plan for 2026.

Also new for 2026, beginning January 1, employees aged 50 and older earning more than $145,000 in FICA Wages the previous year must make any catch-up contributions as an After-tax/Roth contribution. Anyone making under $145,000 can choose how they’d like to make their catch-up contribution (Pre-tax or After-tax).

You can view the additional annual contribution limits announced by clicking on our flyer below.