New Retirement Contribution Limits for 2026
The Internal Revenue Service has released updated retirement contribution limits for 2026. While these changes are relatively modest, they offer important opportunities for individuals and families to maximize savings and fine-tune their financial strategies for the year ahead.
Below is a breakdown of the key updates and what they may mean for your retirement planning.
Individual Retirement Accounts (IRAs)
- IRA contribution limits will increase by $500 in 2026, bringing the total annual contribution limit to $7,500.
- For individuals age 50 and older, catch-up contributions rise by $100, allowing for a total annual contribution of $8,600.
Roth IRAs
Income phase-out ranges for Roth IRA contributions will also increase in 2026:
Single filers and heads of household: $153,000 – $168,000
Married filing jointly: $242,000 – $252,000
Married filing separately: remains $0 – $10,000
These updated thresholds may allow more individuals to take advantage of Roth IRA benefits, depending on income level.
Workplace Retirement Accounts (401(k), 403(b), 457 Plans)
Contribution limits for employer-sponsored retirement plans will rise by $1,000, increasing the annual maximum to $24,500.
Additional catch-up contributions include:
Ages 50 and older: up to $8,000, for a total of $32,500
Ages 60–63: an enhanced catch-up contribution of $11,250, allowing for a total contribution of $35,750
These increases create new opportunities for those approaching retirement to strengthen their long-term savings strategy.
SIMPLE Retirement Accounts
- Contribution limits for SIMPLE plans will increase by $500, bringing the standard limit to $17,000 in 2026.
- Under SECURE Act 2.0, certain eligible plans may qualify for a higher limit of $18,100.
- Gift and Estate Tax Updates
For 2026:
The annual gift tax exclusion remains $19,000 per person
The estate tax exemption increases to:
$15 million for individuals
$30 million for married couples filing jointly
These changes may present planning opportunities for individuals focused on estate and legacy strategies.
Planning Ahead:
While these updates provide helpful guidance for retirement and tax planning, contribution decisions should always be made within the context of your overall financial picture.
The information provided here is for general informational purposes only. We recommend consulting with your tax professional before making any changes based on the new 2026 limits. You may also contact Radius Wealth Management to learn more about how these updates could impact your personal financial strategy and long-term goals.