401(k) Contribution Limit For 2026: IRS Increases Savings Cap For Next Year

• The employee deferral limit for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan has been increased to $24,500 for 2026.
• The IRS also noted that the limit for those aged 50 and above will be $32,500 per year from 2026.
• Similarly, the IRS also announced an increase in Roth IRA contribution limits for 2026 to $7,500, up from $7,500 in 2025.

The Internal Revenue Service (IRS) on Thursday announced an increase in the 401(k) contribution limits for 2026.

The agency stated that the employee deferral limit for 2026 is $24,500, up from $23,500 in 2025. Apart from 401(k)s, the new limit also applies to 403(b)s, governmental 457 plans, as well as the federal Thrift Savings Plan.

The IRS also noted that the limit for those aged 50 and above will be $32,500 per year from 2026.

Catch-Up Contribution Limits

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan has been increased to $8,000, up from $7,500 for 2025.

The agency also noted that under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62, and 63 who participate in these plans.

For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.

Roth IRA Contribution Limits

Similarly, the IRS also announced an increase in Roth IRA contribution limits for 2026 to $7,500, up from $7,500 in 2025.

The Roth IRA catch-up contribution limit for investors age 50 and older has been increased to $1,100, from $1,000 in 2025. 

Meanwhile, U.S. equities declined in Thursday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 1.08%, the Invesco QQQ Trust ETF (QQQ) declined 1.49%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.85%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was down by 0.11%.

Also See: Ondas Stock Soars Pre-Market After Q3 Beat, Company Raises Revenue Forecast For 2025

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