New 2026 Contribution Limits Set for 401(k) and IRA Plans

The Internal Revenue Service (IRS) has announced the upcoming contribution thresholds for retirement savings vehicles in 2026, offering a little more breathing room for workers and savers. Knowing the changes ahead can help you adjust your strategy and continue building your nest egg effectively.

What’s Increasing in 2026

The contribution cap for most 401(k) plans will rise to $24,500, up from $23,500 in 2025.
For traditional or Roth IRAs, the annual limit will increase to $7,500, up from $7,000 this year.
Individuals aged 60-63 will continue to have an elevated catch-up threshold, set at $11,250 for 2026.

Why These Adjustments Matter

These higher limits reflect cost-of-living adjustments made by the IRS in response to inflation. For savers, this means more flexibility to put away additional funds tax-advantaged before year-end. If you were already maxing out your retirement contributions, the new numbers let you increase your savings pace. For those who contribute less, it may be a good time to revisit your budget and plan.

What to Do Next

Review your current contribution amounts to determine how much you are already putting into your 401(k) or IRA.
Decide whether increasing your contributions makes sense based on your financial goals, tax situation, and cash flow.
Update or set your payroll elections for your employer 401(k) so you automatically take advantage of the new limit.
Reassess your IRA strategy, particularly if you were unable to max out before. The higher limit in 2026 gives you room to contribute more.

With these new contribution ceilings established, now is the time to fine-tune your retirement savings strategy. Don’t leave this extra space unused, especially if you were already contributing near the old maximums. Take action now so your retirement plan remains on track. Schedule an appointment with us to discuss how these new limits affect your personal scenario and make sure your savings strategy fully reflects them.

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

New 2026 Contribution Limits Set for 401(k) and IRA Plans