IRS Just Raised Your 401(k) 2026 Contribution Limit: Here's How Much Extra You Can Save
Image source: Getty Images
If you're the kind of person who loves earning more money, today's IRS announcement is fantastic news.
Starting Jan. 1, 2026, workers will be able to stash up to $24,500 in their 401(k) plans -- that's $1,000 more than this year's limit.
Here's what else has changed.
401(k) limit increases to $24,500
The IRS confirmed that employees who participate in 401(k), 403(b), 457, or Thrift Savings Plan accounts can contribute $24,500 in 2026, up from $23,500 in 2025.
If you're 50 or older, your catch-up contribution also rises from $7,500 to $8,000, allowing you to contribute up to $32,500 total next year.
And if you fall within the special SECURE 2.0 "super catch-up" window (ages 60-63), your higher limit remains $11,250.
| Contribution Type | 2025 Limit | 2026 Limit |
|---|---|---|
| 401(k), 403(b), 457 employee contributions | $23,500 | $24,500 |
| Catch-up (age 50+) | $7,500 | $8,000 |
| Super catch-up (ages 60–63) | $11,250 | $11,250 |
| Combined employer + employee max | $70,000 | $72,000 |
Even a modest 4% increase matters. If you invest that extra $1,000 every year and earn a 7% return, you'll have roughly $100,000 more after 30 years.
IRA contribution limits also rise
The IRS also boosted IRA limits for 2026.
You can now contribute up to $7,500 across all your IRAs (traditional or Roth), up from $7,000 in 2025.
If you're 50 or older, your catch-up contribution climbs from $1,000 to $1,100, bringing your total potential contribution to $8,600 next year.
These accounts are still among the easiest ways to invest for retirement. You can open one online in minutes, often with no minimum balance. See our picks for the best brokers for IRAs that make saving automatic.
Higher income limits for deductions and credits
Income phase-outs for IRA deductions, Roth IRA eligibility, and the Saver's Credit are also rising in 2026.
- Single taxpayers with a workplace plan: phase-out between $81,000 and $91,000 (up from $79,000-$89,000).
- Married couples filing jointly (covered spouse): $129,000-$149,000 (up from $126,000-$146,000).
- Married filing jointly (one spouse covered): $242,000-$252,000 (up from $236,000-$246,000).
These adjustments expand access for higher earners who may have been previously phased out of Roth IRA or traditional IRA deductions.
Why this matters
Raising the limits doesn't sound huge -- an extra $500 here or $1,000 there -- but small increases compound into real money.
For anyone trying to catch up on retirement savings or lower their taxable income, 2026 offers a slightly bigger window to do both.
Now's the time to:
- Log in to your 401(k) portal and schedule a bump in contributions for January.
- Double-check your payroll settings so you don't leave free tax deferral on the table.
- Consider opening or topping off an IRA before year-end to take advantage of the new limit next year.
A few clicks today can add thousands to your future balance. You can compare the top IRAs for 2026 here.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.