No Items in Cart 
On November 13th, 2025, the Internal Revenue Service (IRS) unveiled updated benefit contribution limits for retirement plans beginning in 2026. In summary, the agency stated that these adjustments are part of its commitment to help Americans secure their financial futures. Recently, in October, the IRS released multiple pieces of guidance regarding employment issues and their relationship to the new One Big Beautiful Bill. This blog post explains the new limits recently released by the IRS.
401(k) Benefit Contribution Limit Increase
Firstly, the IRS raised the contribution limit for 401(k) plans in 2026, allowing individuals to contribute up to $24,500. This is an increase from the previously set amount of $32,500 in 2025. Explicitly, the IRS stated that this raise is a positive step toward helping workers save more for their retirements.
IRA Benefit Contribution Updates
Equally important, for those individuals who utilize Individual Retirement Accounts (IRAs), there are also notable updates. Indeed, the limit on annual contributions to an IRA will be $7,500, up from $7,000 in the previous year. Additionally, under the SECURE 2.0 Act, the IRA catch-up contribution limit for individuals aged 50 and over is $1,100, up from $1,000 for 2025.
Catch-Up Contributions
Lastly, individuals aged 50 or over participating in most retirement plans can make catch-up contributions of up to $8,000. Hence, an individual could contribute up to $32,500 starting in 2026 if they fall into this category.
Income Ranges and Deductions
Additionally, the income ranges for making deductible benefit contributions to traditional IRAs and Roth IRAs were also adjusted. Knowing this is crucial for understanding the tax advantages one might receive based on their income level.
- For single taxpayers covered by a workplace retirement plan, the phase-out range will be between $81,000 and $91,000. This range is increased from between $79,000 and $89,000.
- The phase-out range for married couples filing jointly has expanded to between $129,000 and $149,000. This range is increased from between $126,000 and $146,000.
- If a plan does not cover an individual, but another plan covers their spouse, the range is now $242,000 to $252,000. This range is up from between $236,000 and $246,000.
- Married individuals filing separate returns and covered by a workplace retirement plan maintain a phase-out range between $0 and $10,000.
Roth IRA Benefit Contribution Adjustments
The income phase-out ranges for those contributing to a Roth IRA have also changed for 2026. The new limits are as follows:
- For singles and heads of household, the income phase-out range is now between $153,000 and $168,000. This range is up from $150,000 to $165,000.
- Married couples filing jointly will find their phase-out range increased to between $242,000 and $252,000. This range is up from $236,000 to $246,000.
- Married individuals filing separately and contributing to a Roth IRA maintain a phase-out range between $0 and $10,000.
Saver’s Credit Update and SIMPLE Retirement Account Contributions
Additionally, the Saver’s Credit, which benefits low- and moderate-income workers, has also increased. Details of the new Saver’s Credit limits include the following:
- $80,500 for married couples filing jointly, up from $79,000,
- $60,375 for heads of household, up from $59,250, and
- $40,250 for singles and married individuals filing separately, up from $39,500.
Lastly, individuals contributing to SIMPLE retirement accounts can now contribute up to $17,000, an increase from $16,500.
Employer Takeaways
In conclusion, employers can find more detailed information on these retirement-related adjustments for 2026 in Notice 2025-67.
Finally, any employers acting as fiduciaries must comply with duties under the Employee Retirement Income Security Act (ERISA). This includes maintaining employee records that contain benefit information for at least six years after the filing date.
