IRS Sets 2026 Retirement Plan Contribution Limits

The IRS has announced updated contribution limits for retirement accounts for 2026. Below is a quick, easy-to-follow overview to help you plan your contributions—or withdrawals—for the year ahead.

As always, it’s a good idea to talk with a tax advisor before making any changes to your retirement strategy. You can also contact us to discuss these updates and what they may mean for your retirement planning.

Here’s what’s changing for individual retirement accounts (IRAs), SIMPLE IRAs, and workplace retirement plans.

Traditional Individual Retirement Accounts (IRAs)

For individuals under age 50, the contribution limit for traditional IRAs increases to $7,500 for 2026, up $500 from 2025. Those aged 50 and older can make an additional $1,100 catch-up contribution, bringing their total limit to $8,600 (up from a $1,000 catch-up in 2025).

Most people must begin taking required minimum distributions (RMDs) from traditional IRAs starting at age 73. These withdrawals are taxed as ordinary income, and withdrawals taken before age 59½ may be subject to a 10% penalty.

Roth IRAs

Roth IRA contributions are subject to income limits, which phase out gradually as your modified adjusted gross income (MAGI) increases.

For 2026, the Roth IRA income phase-out ranges are increasing:

• Single filers and heads of household: $153,000 to $168,000 (up $3,000)
• Married couples filing jointly: $242,000 to $252,000 (up $6,000)
• Married individuals filing separately: $0 to $10,000 (unchanged)

Roth 401(k) distributions: To take withdrawals that are both tax-free and penalty-free, the account must meet the five-year holding requirement and the withdrawal must occur after age 59½ or under certain qualifying circumstances (such as death).

Workplace Retirement Accounts

(401(k), 403(b), 457 plans, and similar accounts)

• The annual contribution limit increases by $1,000, bringing the 2026 total to $24,500.
• Catch-up contributions for those aged 50 and older remain at $7,500, for a total possible contribution of $31,000.

As with IRAs, RMDs begin at age 73, and withdrawals are taxed as ordinary income. Early withdrawals before age 59½ may result in a 10% penalty.

SIMPLE IRAs

• The contribution limit for SIMPLE plans increases by $500, bringing the 2026 limit to $17,000.
• Catch-up contributions for those 50 and older remain at $4,000, for a total of $21,000.

RMDs for SIMPLE IRAs also begin at age 73, and early withdrawals before age 59½ may be subject to a 10% penalty.

Final Thoughts

Understanding these updated limits can help you adjust your contributions—especially if you’re close to or already maxing out your retirement accounts. If you’re retired, it’s also important to ensure you begin taking RMDs on time to avoid unnecessary penalties.