2026 Retirement Contributions and Phaseouts are Here
.webp)
By Ben Dolan, CFP®
Thinking about planning for next year can be difficult when, if you are like me, you just started planning for Thanksgiving and Christmas. But plan we shall!!! Last week the IRS released details on 2026 retirement contributions and phaseout limits.
Here’s a summary:
- The 401(k), 403(b), governmental 457, and Thrift Savings Plan annual contribution limit increases to $24,500 in 2026 (up from $23,500 for 2025).
- The IRA annual contribution limit increases to $7,500 (up from $7,000 for 2025).
- The IRA catch-up contribution limit for individuals aged 50 and over is increased to $1,100 (up from $1,000 for 2025).
- The catch-up contribution limit for employees aged 50+ in most 401(k), 403(b), governmental 457 plans, and Thrift Savings Plan rises to $8,000 (up from $7,500 for 2025), allowing a total possible contribution of $32,500 for those 50 and older. Note, in 2026, if your prior year wages were greater than $145,000, then your catch-up contributions must go to the Roth component of your plan.
- A higher “super catch-up” contribution limit for employees aged 60, 61, 62, and 63 remains $11,250 for these workplace plans. Note, in 2026, if your prior year wages were greater than $145,000, then your catch-up contributions must go to the Roth component of your plan.
- IRA phase-out ranges for deduction eligibility:
- Single taxpayers: $81,000 to $91,000 (up from $79,000 to $89,000).
- Married couples filing jointly, covered spouse: $129,000 to $149,000 (up from $126,000 to $146,000).
- IRA contributor not covered, spouse covered: $242,000 to $252,000 (up from $236,000 to $246,000).
- Married filing separately: remains $0 to $10,000.
- Roth IRA phase-out ranges:
- Singles and heads of household: $153,000 to $168,000 (up from $150,000 to $165,000).
- Married filing jointly: $242,000 to $252,000 (up from $236,000 to $246,000).
- Married filing separately: remains $0 to $10,000.
- Saver’s Credit income limits:
- Married filing jointly: $80,500 (up from $79,000).
- Head of household: $60,375 (up from $59,250).
- Single/married filing separately: $40,250 (up from $39,500).
- SIMPLE retirement account contribution limit rises to $17,000 (up from $16,500); higher amount for certain plans rises to $18,100 (up from $17,600).
- Simple IRA catch-up contribution limit for employees aged 50+ increases to $4,000 (up from $3,500); for certain applicable plans, remains $3,850. Unlike with other retirement plans, those with higher incomes making catch-up contributions in a Simple IRA are not required to make them in a Roth.
- Higher catch-up for SIMPLE plans for ages 60-63 remains $5,250. Unlike other retirement plans, those with higher incomes making catch-up contributions in a Simple IRA are not required to make them in a Roth.
Don’t hesitate to reach out if you have specific questions or concerns about planning for 2026. We are here to help!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The market and economic data are historical and are no guarantee of future results. All indices are unmanaged and may not be invested into directly. The information in this report has been prepared from data believed to be reliable, but no representation is being made as to its accuracy and completeness.
Nothing in this material should be construed as investment advice offered by Dolan Capital Advisors, Inc. This market commentary is for informational purposes only and is not meant to constitute a recommendation of any particular investment, security, portfolio of securities, transaction, or investment strategy. No chart, graph, or other figure provided should be used to determine which securities to buy, sell or hold. No representation is made concerning the appropriateness of any particular investment, security, portfolio of securities, transaction, or investment strategy. You should speak with your own financial professional before making any investment decisions.
Past performance is not indicative of future results. Dolan Capital Advisors, Inc. does not guarantee any specific outcome or profit. These disclosures cannot and do not list every conceivable factor that may affect the results of any investment or investment strategy. Risks will arise, and an investor must be willing and able to accept those risks, including the loss of principal.
Certain statements contained herein are statements of future expectations and other forward-looking statements that are based on opinions and assumptions that involve known and unknown risks and uncertainties that would cause actual results, performance, or events to differ materially from those expressed or implied in such statements.
Ben Dolan and Michael Foster are investment advisor representatives of Dolan Capital Advisors, Inc., a SEC-registered investment adviser. Investment advice offered through Dolan Capital Advisors, Inc.