This month’s must-read, New Retirement Contribution Limits for 2026: The Internal Revenue Service has announced the adjusted contribution limits and related thresholds for 2026. These changes primarily reflect standard inflation adjustments and introduce only modest increases rather than significant overhauls. For Individual Retirement Accounts (IRAs), the annual contribution limit rises by $500 to $7,500, with the catch-up contribution for individuals aged 50 and older increasing by $100 to $1,100, resulting in a total of $8,600. Roth IRA contribution eligibility phase-out ranges have also been raised: for single filers and heads of household, the range is now $153,000 to $168,000; for married couples filing jointly, it is $242,000 to $252,000. The phase-out for married individuals filing separately remains unchanged at $0 to $10,000.
Workplace retirement plans, including 401(k), 403(b), and 457 plans, see the elective deferral limit increase by $1,000 to $24,500. Participants aged 50 and older may contribute an additional $8,000 catch-up amount, for a total of $32,500. Those aged 60 through 63 benefit from a higher catch-up limit of $11,250 under recent legislation, bringing their maximum contribution to $35,750. SIMPLE IRA plans rise by $500 to $17,000, with certain plans qualifying for an enhanced limit of $18,100. On the gift and estate tax side, the annual gift exclusion remains $19,000 per recipient, while the estate tax exemption increases to $15 million for individuals and $30 million for married couples filing jointly. These updates provide helpful additional flexibility for savers and estate planners. As always, it is advisable to consult a qualified tax professional before adjusting any financial strategies in light of the 2026 figures.
The Internal Revenue Service recently released new limits for 2026. Although these adjustments won’t bring any major changes, there are some minor elements to note.
Individual Retirement Accounts (IRAs)
IRA contribution limits are up $500 in 2026 to $7,500. Catch-up contributions for those over age 50 are up $100 to $1,100, bringing the total limit to $8,600.
Roth IRAs
The income phase-out range for Roth IRA contributions increases to $153,000-$168,000 for single filers and heads of household. For married couples filing jointly, the phase-out will be $242,000 to $252,000. Married individuals filing separately see their phase-out range remain at $0-10,000.
Workplace Retirement Accounts
Those with 401(k), 403(b), 457 plans, and similar accounts will see a $1,000 increase for 2026, the limit rising to $24,500. Those aged 50 and older will now have the ability to contribute an extra $8,000, bringing their total limit to $32,500. Those aged 60, 61, 62, and 63 may enjoy a higher catch-up contribution of $11,250, raising their total contribution limit to $35,750.
SIMPLE Accounts
A $500 increase in limits for 2026 gives individuals contributing to this incentive match plan a $17,000 stoplight. Pursuant to the Secure Act 2.0, certain applicable plans have an increased limit of $18,100.
Gift and Estate Taxes
For 2026, the annual exclusion for gifts remains $19,000 per person. The estate tax exemption increases to $15 million for individuals and $30 million for those filing jointly.
Keep in mind that we provide updates for informational purposes only, so consult with your tax professional before making any changes in anticipation of the new 2026 levels. You can also contact our offices, and we can provide you with information about the pending changes.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.