New Retirement Contribution Limits for 2026

The Internal Revenue Service (IRS) has released new limits for certain retirement accounts for the coming year.

Keep in mind that this update is for informational purposes only, so please consult with an accounting or tax professional before making any changes to your 2026 tax strategy. You can also contact your financial professional, who may be able to provide you with information about the pending changes.

Individual Retirement Accounts (IRAs)

Traditional IRA contribution limits are up $500 in 2026 to $7,500. Catch-up contributions for those over age 50 are up $100 to $1,100, bringing the total limit to $8,600.

Remember, once you reach age 73, you must begin taking required minimum distributions from a Traditional IRA in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.

Roth IRAs

The income phase-out range for Roth IRA contributions increases to $153,000-$168,000 for single filers and heads of household, a $3,000 increase. For married couples filing jointly, the phase-out will be $242,000-$252,000, a $6,000 increase. Married individuals filing separately see their phase-out range remain at $0-10,000.

To qualify for the tax-free and penalty-free withdrawal of earnings, Roth 401(k) distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death.

Workplace Retirement Accounts

Those with 401(k), 403(b), 457 plans, and similar accounts will see a $1,000 increase for 2026, the limit rising to $24,500. Those aged 50 and older will continue to have the ability to contribute an extra $8,000, bringing their total limit to $32,500. Those aged 60, 61, 62, and 63 may enjoy a higher catch-up contribution of $11,250, raising their total contribution limit to $35,750.

Once you reach age 73 you must begin taking required minimum distributions from your 401(k) or other defined-contribution plans in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.

SIMPLE Accounts

A $500 increase in limits for 2026 gives individuals contributing to this incentive match plan a $17,000 stoplight. Pursuant to the SECURE Act 2.0, certain applicable plans have an increased limit of $18,100.

Much like a traditional IRA, once you reach age 73, you must begin taking required minimum distributions from a SIMPLE account in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.

As a reminder, this article is for informational purposes only. Consult with an accounting or tax professional before making any changes to your 2025 tax strategy.

FAQs About 2026 Retirement Contribution Limits

• What are the new IRA contribution limits for 2026?

  For 2026, the IRS increased the Traditional IRA contribution limit to $7,500. Individuals age 50 and older may make an additional $1,100 catch-up contribution, bringing their total possible contribution to $8,600.

• Do Roth IRA income limits change in 2026?

  Yes. For 2026, Roth IRA income phase-out ranges increased. Single filers and heads of household now phase out between $153,000 and $168,000, while married couples filing jointly phase out between $242,000 and $252,000. Married individuals filing separately remain at $0–$10,000.

• What are the 2026 contribution limits for 401(k) and similar workplace retirement plans?

  The contribution limit for 401(k), 403(b), 457, and similar plans rises to $24,500 in 2026. Individuals age 50 and older may contribute an additional $8,000, while those ages 60–63 may qualify for a higher catch-up contribution of $11,250.

• When do required minimum distributions (RMDs) begin?

  In most cases, required minimum distributions from Traditional IRAs, 401(k)s, SIMPLE plans, and other defined-contribution accounts must begin at age 73. RMDs are generally taxed as ordinary income.

• Are there penalties for early retirement account withdrawals?

  Yes. Withdrawals taken before age 59½ may be subject to a 10% federal income tax penalty, in addition to ordinary income taxes, unless an exception applies.

• What are the 2026 contribution limits for SIMPLE retirement plans?

  For 2026, SIMPLE plan contribution limits increase to $17,000. Certain plans covered under SECURE Act 2.0 may allow contributions of up to $18,100.

• How can retirement contribution changes affect my overall financial plan?

  Changes to retirement contribution limits can impact tax planning, savings strategies, and long-term retirement goals. A financial advisor can help evaluate how these updates fit into your broader financial strategy and coordinate with your tax professional.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2026 FMG Suite.

© 2026 Commonwealth Financial Network®