The IRS has announced updated retirement contribution limits for tax year 2026.
The annual contribution limit for 401(k), 403(b), and most 457 plans will increase to $24,500, up from $23,500 for 2025.
The annual contribution limit for Individual Retirement Accounts (IRAs) will increase to $7,500, up from $7,000.
For individuals age 50 and above, the catch-up contribution limit for workplace retirement plans will be $8,000.
For individuals age 60 to 63, the higher catch-up contribution limit of $11,250 will continue to apply.
These increases provide taxpayers with additional opportunities to save and strengthen their retirement planning for the future. Taxpayers are encouraged to review their current contributions and adjust their savings strategy to take full advantage of the new limits starting in 2026.
USCPA Sophie Luo (羅霞) reminds taxpayers to review their retirement contributions annually, ensure they are maximizing eligible tax benefits, and make adjustments early in the year to stay aligned with long-term financial goals.
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