IRS Raises 401k Contribution Limit to 24500 for 2026 Tax Year
The IRS increased the annual 401k contribution limit to $24,500 for 2026, up from $23,500 in 2025. Workers aged 50 and older can contribute an additional $8,000 as a catch-up. Those aged 60 to 63 qualify for a higher catch-up of $11,250 under the SECURE 2.0 Act.
The Internal Revenue Service raised the annual contribution limit for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan to $24,500 for the 2026 tax year, up from $23,500 in 2025.
Workers aged 50 and older can make an additional catch-up contribution of $8,000, bringing their total to $32,500. Under the SECURE 2.0 Act, employees aged 60 through 63 qualify for a higher catch-up amount of $11,250 instead of the standard $8,000, provided their plan allows it.
The total combined limit for employee and employer contributions is $72,000. Including catch-up contributions, that ceiling rises to $80,000 for workers 50 and older, or $83,250 for those aged 60 to 63.
The IRS also introduced a new Roth requirement for high earners. Employees who earned more than $150,000 in the prior year must now make their catch-up contributions as Roth, or after-tax, contributions.
For individual retirement accounts, the annual contribution limit increased to $7,500, with a catch-up contribution of $1,100 for those 50 and older.
Income phase-out ranges for Roth IRA eligibility in 2026 are $153,000 to $168,000 for single filers and $242,000 to $252,000 for married couples filing jointly. Financial advisors recommend capturing any employer match before directing extra savings elsewhere, calling it one of the most reliable wealth-building steps available.
