The IRS has announced several important updates to retirement savings limits and income thresholds for 2026. Here’s what you need to know:

Contribution Limits Are Rising

• 401(k), 403(b), 457 plans, and TSP: Annual contribution limit increases to $24,500 (up from $23,500).
• IRA contributions: Limit rises to $7,500 (up from $7,000).
• IRA catch-up (age 50+): Now $1,100, adjusted for inflation (up from $1,000).
• 401(k)/403(b)/457/TSP catch-up (age 50+): Increased to $8,000, allowing total contributions of $32,500 for those 50 and older.
• Special catch-up (ages 60–63): Remains at $11,250 for 2026.

Income Phase-Out Ranges for IRA Deduction

• Single, covered by workplace plan: $81,000–$91,000 (was $79,000–$89,000)
• Married filing jointly, covered spouse: $129,000–$149,000 (was $126,000–$146,000)
• Married, one spouse covered: $242,000–$252,000 (was $236,000–$246,000)
• Married filing separately: Still $0–$10,000 (unchanged)

These updates reflect cost-of-living adjustments and provisions from the SECURE 2.0 Act, offering expanded opportunities to strengthen retirement readiness.

If you’d like to understand how these 2026 updates could impact your retirement planning or benefit strategies, the team at LSWG is here to guide you. We’re committed to helping you make informed decisions and look forward to supporting your continued success in the year ahead.