2026 retirement plan limits tax pros need to know

The IRS has released the cost-of-living adjustments for 2026 retirement plan limits in Notice 2025-67, also announced in news release IR-2025-111. These changes affect the amount your clients can contribute to workplace plans, IRAs and SIMPLE accounts next year.

For 2026, the §401(k) elective deferral limit is $24,500 and the IRA contribution limit is $7,500, with higher catch-up amounts for older savers.

Below is a quick walk-through of the key numbers you will be talking about with clients, along with planning angles you can use right away. 

2026 contribution limits for workplace plans

For employees in §§401(k), 403(b), governmental 457 plans and the Thrift Savings Plan, the 2026 elective deferral limit increases to $24,500, up from $23,500 for 2025. That extra $1,000 can matter for higher earners trying to close a retirement savings gap.

Catch-up contributions also rise:

• General age 50+ catch-up increases to $8,000 for §§401(k), 403(b), governmental 457 plans and the Thrift Savings Plan, up from $7,500 in 2025.
  
  • That means most participants who are 50 or older can contribute up to $32,500 in 2026 when you combine the regular limit and catch-up.
• The super catch-up for ages 60 to 63 remains a higher $11,250 for 2026 instead of the general $8,000 catch-up amount for those years.

These changes are a good reason to review salary deferral elections during year-end meetings or early in 2026 so clients do not miss the new maximums.

IRA contribution and deduction rules

The general IRA contribution limit for 2026 increases to $7,500, up from $7,000 in 2025. The IRA catch-up contribution for individuals age 50 and older is now indexed and increases to $1,100 for 2026.

The income phase-out ranges for deducting traditional IRA contributions when a workplace plan covers a client (or spouse) also increase:

• Single taxpayers covered by a workplace plan: phase-out between $81,000 and $91,000 (up from $79,000-$89,000)
• Married filing jointly, contributor covered by a workplace plan: phase-out between $129,000 and $149,000 (up from $126,000-$146,000)
• Married filing jointly, contributor not covered but spouse is: phase-out between $242,000 and $252,000 (up from $236,000-$246,000)
• Married filing separately, covered by a workplace plan: phase-out range remains $0 to $10,000

These thresholds are where you will want to pay close attention when clients ask why their "full deduction" shifts year to year. A quick eligibility check before funding can prevent surprise disallowances.

Roth IRA and saver's credit updates

The 2026 Roth IRA income phase-out ranges also move up:

• Singles and heads of household: $153,000-$168,000 (up from $150,000-$165,000)
• Married filing jointly: $242,000-$252,000 (up from $236,000-$246,000)
• Married filing separately: still $0-$10,000

For the saver's credit (retirement savings contributions credit), the 2026 income limits increase to:

• $80,500 for married filing jointly (up from $79,000)
• $60,375 for heads of household (up from $59,250)
• $40,250 for singles and married filing separately (up from $39,500)

These changes serve as a good prompt to revisit whether lower- and moderate-income clients can benefit from this often-overlooked, yet valuable, credit when they contribute to retirement plans or IRAs.

SIMPLE plan contribution and catch-up limits

For SIMPLE retirement accounts, the general 2026 contribution limit increases to $17,000, up from $16,500. The higher allowable contribution for certain "applicable" SIMPLE plans rises to $18,100, up from $17,600.

Catch-up amounts for SIMPLE plans change as well:

• Standard age 50+ catch-up increases to $4,000, up from $3,500.
• For certain applicable SIMPLE plans, the age 50+ catch-up remains $3,850.
• The special catch-up for ages 60 to 63 for SIMPLE plans remains $5,250 in 2026.

These numbers are significant for small business clients who rely on SIMPLE plans as their primary retirement savings vehicle, so ensure they understand both the base and catch-up opportunities.

How tax pros can use these 2026 changes now

Even though many of these limits apply to 2026, you can fold them into planning conversations immediately:

• Help clients adjust 2026 deferral elections so they take advantage of the higher limits starting with the first paycheck of the year.
• Identify clients nearing the new phase-out ranges so you can choose between traditional and Roth contributions more strategically.
• Flag eligible lower-income clients for the saver's credit and ensure their contributions are timed and appropriately documented.
• Coordinate with employers and payroll providers for SIMPLE and §401(k) plans so systems reflect the new limits before January.

For a complete listing of all the 2026 retirement-related cost-of-living adjustments, refer to Notice 2025-67, which will also appear in Internal Revenue Bulletin 2025-49.

Stay ahead with NATP

Retirement limits change every year, and it can be challenging for busy practices to keep everything up to date. At NATP, we closely follow IRS guidance, such as Notice 2025-67, so our members can focus on advising clients, not chasing updates.

If you'd like steady, plain-language explanations of changes like the 2026 retirement plan limits, along with practical tools you can use in your practice, you can learn more about how we support tax professionals at NATP.