Retirement Plan Contribution Limits Announced for 2026

The IRS has released the updated retirement contribution limits for 2026, including new thresholds for 401(k)s, IRAs, SIMPLE plans, and income phase-outs. These annual cost-of-living adjustments give savers an opportunity to increase tax-advantaged contributions and strengthen long-term retirement strategies.

Below is a breakdown of the key changes for 2026 and what they may mean for your financial planning.

401(k), 403(b), 457 & Thrift Savings Plan (TSP)

For those contributing through an employer-sponsored retirement plan:

• Employee contribution limit: increases to $24,500 (up from $23,500 in 2025).

• Age 50+ catch-up contribution: increases to $8,000.

• Total contribution for age 50+: up to $32,500.

• Catch up Contributions (ages 60-63 ONLY): $11,250

  • Total contribution for ages 60 to 63: $35,750

Under SECURE 2.0, individuals aged 60–63 qualify for an even higher catch-up limit. For 2026, this enhanced catch-up stays at $11,250.

Traditional & Roth IRA Contribution Limits

The annual IRA contribution limits also increase for 2026:

• IRA contribution limit: $7,500 (up from $7,000).

• Age 50+ IRA catch-up: $1,100 (up from $1,000).

  • Total contribution for 50+ = $8,600

However, whether contributions are tax-deductible (for Traditional IRAs) or eligible (for Roth IRAs) depends on income and workplace plan coverage.

Traditional IRA Deduction Phase-Outs (2026)

If you or your spouse is covered by a retirement plan at work, your ability to deduct a Traditional IRA contribution may be reduced.

Deduction phase-out ranges for 2026:

• Single taxpayers covered by a workplace plan: $81,000–$91,000

• Married filing jointly, contributing spouse covered: $129,000–$149,000

• MFJ, contributing spouse NOT covered but spouse IS covered: 42,000–$252,000

• Married filing separately: $0–$10,000 (unchanged; not adjusted for inflation)

Roth IRA Income Phase-Outs (2026)

Eligibility to contribute to a Roth IRA is determined by modified adjusted gross income (MAGI).

Roth IRA phase-out ranges for 2026:

• Single/Head of Household: $153,000–$168,000

• Married filing jointly: $242,000–$252,000

• Married filing separately: $0–$10,000 (unchanged)

These increased thresholds help more households stay eligible to make Roth contributions, even with rising incomes.

SIMPLE IRA & SIMPLE 401(k) Contribution Limits

For small business owners and employees participating in SIMPLE plans:

• Standard SIMPLE contribution limit: $17,000 (up from $16,500)

• Higher SECURE 2.0 SIMPLE limit: $18,100

• Age 50+ catch-up: $4,000

Some SIMPLE plans have different catch-up rules under SECURE 2.0:

• Alternative age 50+ catch-up: $3,850

• Enhanced age 60–63 catch-up: $5,250

Need help navigating the new limits?

At Whitener Capital Management, we help clients align their savings strategy with tax law updates, market conditions, and long-term retirement goals.

If you’d like to review your retirement contributions or explore whether Traditional, Roth, SIMPLE, or employer-sponsored plans make the most sense for you, we’re here to help.

Schedule a meeting with us anytime.