The IRS on Thursday unveiled new contribution limits for 401(k) plans.
Individuals will be able to save up to $24,500 in 2026. That’s an increase of $1,000 from the contribution limit in 2025.
The limit also applies to 403(b) plans, 457 plans and the federal government’s Thrift Savings Plan, according to the IRS.
The catch-up contribution limit for those plans will increase to $8,000 in 2026, up $500 from the current limit.
The extra contribution is generally allowed for people aged 50 and up. Those workers will be able to save a total of $32,500 in 2026.
An even higher catch-up limit applies to workers aged 60, 61, 62 and 63. That higher limit remains $11,250, the IRS said.
For high-income workers, catch-up contributions will no longer be deducted pre-tax. That’s a change required by a 2022 law. The administration of President Donald Trump issued final rules on that topic earlier in 2025.
The annual contribution limit for individual retirement account (IRA) plans will also increase next year. That limit will rise to $7,500, up from $7,000 in 2025.
The IRA catch-up contribution limit for those 50 and up will be $1,100 in 2026, up from $1,000.
You can get more information on annual changes to 401(k), IRA and other retirement savings plans on the IRS website.
