You can stash more in your 401(k) and IRA next year—here’s the new IRS limit

Every year, American taxpayers are eligible to put a certain amount of money into their retirement accounts, including 401(k)s and IRAs. But each year, the upper allowable threshold for these accounts tends to rise. This is done in order for the limits to keep up with the rate of inflation. And now, the Internal Revenue Service (IRS) has announced its new limits for 2026. Here’s what you need to know.

What is the IRS 2026 401(k) limit?

According to a notice published by the IRS on November 13, the limit on individual contributions to various retirement accounts in 2026 is rising.

If you have a 401(k), 403(b), governmental 457 plan, or the federal government’s Thrift Savings Plan, you’ll now be able to contribute up to $24,500 for the 2026 year.

This represents an increase of $1,000 from the $23,500 limit in place for the 2025 year.

But the IRS has also announced new “catch-up” contribution limits for 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan for 2026. The agency says that if you are 50 or older, your catch-up contribution limit will increase by $500 in 2026 to a total of $8,000.

“Therefore, participants in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026,” the agency noted.

Catch-up contribution limits for employees aged 60 to 63 will remain at $11,250, the same level they were in 2025.

What is the IRS 2026 IRA limit?

If you have an individual retirement account (IRA), the IRS has announced that the limit for that type of account is rising in 2026, too.

In 2026, the new IRA contribution limit will be $7,500. That’s a rise of $500 over the 2025 limit.

Additionally, the IRA catch‑up contribution limit for those aged 50 or over is also rising in 2026. In 2025, that limit was $1,000. But in 2026, that limit is rising by $100 to $1,100.

In addition to the 401(k) and IRA contribution limits for 2026, the IRS announced additional changes for Roth IRAs, the Saver’s Credit, and SIMPLE retirement accounts for 2026. You can find details of all the changes in the IRS’s notice here.