The IRS has announced increased retirement savings limits for 2026, with higher contributions allowed across 401(k)s, IRAs, SIMPLE plans and related programs. The updates reflect annual cost-of-living adjustments.

For employees participating in 401(k), 403(b), governmental 457 plans and the federal Thrift Savings Plan, the annual contribution limit will rise to $24,500, up from $23,500 in 2025. The standard catch-up contribution for workers age 50 and older increases to $8,000, up from $7,500. This means eligible participants can contribute up to $32,500 in 2026. 

IRA contribution limits also will increase. The annual limit rises to $7,500, up from $7,000, while the catch-up contribution for individuals 50 and older increases to $1,100, up from $1,000.

Despite these retirement contribution increases, many Americans aren’t on track for retirement, according to Vanguard, an asset management firm. Its research shows that about 4 in 10 Americans are on pace to maintain their current lifestyles in retirement.

Go to IRS.gov for more information.