The IRS’s annual inflation adjustments gave retirement savers more room in 2026. The headline numbers, straight from the IRS announcement:
- 401(k), 403(b), and most 457 plans: $24,500 in employee deferrals, up from $23,500 in 2025.
- Catch-up (age 50+): an additional $8,000, for a $32,500 total.
- Super catch-up (ages 60-63): $11,250 instead of the standard catch-up, under SECURE 2.0.
- Combined employee + employer 401(k) limit: $72,000.
- IRA (traditional and Roth): $7,500, up from $7,000. The IRA catch-up rises to $1,100, so savers 50 and older can put in $8,600.
- Roth IRA income phase-out: $153,000-$168,000 for single filers; $242,000-$252,000 for married filing jointly.
Three ways to actually use the increase
1. Re-run your payroll percentage. Most people set a contribution percentage once and forget it. Hitting the new $24,500 cap requires roughly $2,042 a month; if you were maxing 2025’s limit on autopilot, you are now leaving $1,000 of tax-advantaged space unused.
2. The 60-63 window is unusually generous. Four years at $11,250 catch-up on top of the base limit – $35,750 a year of deferrals – is a late-career accumulation tool that did not exist a few years ago. If retirement is close and savings are behind, these are the years that move the needle.
3. Mind the phase-outs before backdooring. If your income lands inside the Roth phase-out band, a direct Roth contribution partially or fully closes. Know where you sit before contributing in January rather than unwinding excess contributions in April.
Contribution limits are one lever; where the money sits is the other. Cash you are holding short-term deserves a competitive yield too – see current savings and CD rates and our broader retirement saving guide.
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This article originally appeared on RateZip and was syndicated by MediaFeed.co.
