The IRS has released the inflation-adjusted contribution limits for 2026 (Notice 2025-67). While the increases are generally more modest than in recent years, most major retirement savings limits will still rise, giving many taxpayers especially business owners and higher-earning individuals — additional opportunities to strengthen their long-term savings strategy.

Below is a snapshot of the updated limits for 2026:

2026 Retirement Plan Contribution Limits

Type of Limitation	2025 Limit	2026 Limit
Elective deferrals to 401(k), 403(b), and 457 plans	$23,500	$24,500
Annual benefit limit for defined benefit plans	$280,000	$290,000
Total contributions to defined contribution plans	$70,000	$72,000
SIMPLE contributions	$16,500	$17,000
Traditional and Roth IRA contributions	$7,000	$7,500
Catch-up contributions (age 50+) for 401(k), 403(b), and 457 plans*	$7,500	$8,000
Catch-up contributions (ages 60–63) for 401(k), 403(b), and 457 plans*	$11,250	$11,250
SIMPLE catch-up contributions (age 50+)	$3,500	$4,000
SIMPLE catch-up contributions (ages 60–63)	$5,250	$5,250
IRA catch-up contributions (age 50+)	$1,000	$1,100
Compensation limit for qualified plans and SEPs	$350,000	$360,000
Minimum compensation for SEP coverage	$750	$800
Highly compensated employee threshold	$160,000	$160,000

*Beginning in 2026, SECURE 2.0 requires catch-up contributions for higher-income taxpayers to be treated as Roth (after-tax) contributions. This generally applies to individuals with prior-year wages over $150,000. However, new final regulations give plans until December 31, 2026 to adopt the required amendments — meaning plans may continue to accept non-Roth catch-up contributions during 2026 without adverse consequences.

 

How MAGI Affects IRA Contribution Eligibility

Your modified adjusted gross income (MAGI) may limit your ability to contribute to — or deduct contributions from — traditional and Roth IRAs. The good news: all MAGI phaseout ranges will increase for 2026.

Traditional IRA Deduction Phaseouts (2026)

If you or your spouse participates in an employer-sponsored retirement plan, MAGI limits determine whether your traditional IRA contributions are deductible:

• Married filing jointly
  • For the spouse who participates in a workplace plan:
    $129,000 – $149,000 (up $3,000)
  • For the spouse who doesn’t participate:$242,000 – $252,000 (up $6,000)
• Single or head of household (participating in a workplace plan)
  • $81,000 – $91,000 (up $2,000)

Taxpayers within these ranges can deduct a partial traditional IRA contribution, while those above the range cannot deduct any contributions. However, even if your deduction is reduced or eliminated, you may still make nondeductible traditional IRA contributions. The $7,500 contribution limit for 2026 (plus a $1,100 catch-up contribution, if eligible, and reduced by any Roth IRA contributions) continues to apply.

Roth IRA MAGI Phaseouts (2026)

Employer plan participation does not affect Roth IRA eligibility, but MAGI limits do:

• Married filing jointly:
  $242,000 – $252,000 (up $6,000)
• Single or head of household:
  $153,000 – $168,000 (up $3,000)

If your MAGI falls within the phaseout range, you may make a partial contribution; above the range, Roth contributions are not allowed.

Note: Married couples filing separately are subject to significantly lower phaseout ranges.

Time to Revisit Your Retirement Strategy

The updated 2026 limits offer an excellent opportunity to reassess your retirement planning — especially with the upcoming SECURE 2.0 Roth catch-up requirement and rising IRA thresholds.

If you’d like help evaluating your current plan, maximizing your contributions, or considering tax-efficient strategies, our team is here to help.

 

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