Retirement account contribution limits are adjusted for inflation every year. Most contribution limits and revenue limits are projected to go up in 2026.
Earlier than the IRS publishes the official changes for the subsequent 12 months in late October or early November, I calculate them based mostly on the revealed inflation numbers by the identical methodology the IRS makes use of, as stipulated by legislation. I’ve maintained a monitor file of 100% accuracy ever since I began doing these calculations.
2025 2026 401k/403b/457/TSP Elective Deferral Restrict
The 401k/403b/457/TSP contribution restrict is $23,500 in 2025. It can go up by $1,000 to $24,500 in 2026.
If you’re age 50 or over by December 31, the catch-up contribution restrict is $7,500 in 2025. It can go up by $500 to $8,000 in 2026.
In case your age is 60 by means of 63 by December 31, you could have a better catch-up restrict of $11,250 in 2025. It can go up by $250 to $11,500 in 2026.
In case your prior 12 months’s wages from the employer have been over $145,000, your 2025 catch-up contribution should go to a Roth subaccount within the plan. The edge will go up by $5,000 to $150,000 in 2026. The IRS has postponed imposing this rule for 2025, however it should begin imposing it in 2026.
Employer match or profit-sharing contributions aren’t included in these limits. In case you work for a number of employers in the identical 12 months or in case your employer presents a number of plans, you could have one single worker contribution restrict for 401k, 403b, and the federal authorities’s Thrift Financial savings Plan (TSP) throughout all plans.
The 457 plan restrict is separate from the 401k/403b/TSP restrict. You possibly can contribute the utmost to each a 401k/403b/TSP plan and a 457 plan.
2025 2026 Annual Additions Restrict
The restrict on complete contributions from each the employer and the worker to all outlined contribution plans by the identical employer is $70,000 in 2025. It can enhance to $72,000 in 2026.
The age-50-or-over catch-up contribution is separate from this restrict. In case you work for a number of employers in the identical 12 months, you could have a separate annual additions restrict for every unrelated employer.
2025 2026 SEP-IRA Contribution Restrict
You probably have self-employment revenue, you’ll be able to contribute a proportion of your self-employment revenue to a SEP-IRA. The SEP-IRA contribution restrict is all the time the identical because the annual additions restrict for a 401k plan. It’s $70,000 in 2025, and it’ll enhance to $72,000 in 2026.
As a result of the SEP-IRA doesn’t permit worker contributions, except your self-employment revenue is properly above $200,000, you could have a better contribution restrict in case you use a solo 401k. See Solo 401k When You Have Self-Employment Revenue.
2025 2026 Annual Compensation Restrict
The utmost annual compensation that may be thought of for making contributions to a retirement plan is all the time 5x the annual additions restrict. Due to this fact the annual compensation restrict is $350,000 in 2025. It can enhance to $360,000 in 2026.
2025 2026 Extremely Compensated Worker Threshold
In case your employer limits your contribution since you’re a Extremely Compensated Worker (HCE), the minimal compensation to be counted as an HCE is $160,000 in 2025. It can keep the identical at $160,000 in 2026.
2025 2026 SIMPLE 401k and SIMPLE IRA Contribution Restrict
Some smaller employers provide a SIMPLE 401k or a SIMPLE IRA plan as a substitute of an everyday 401k plan. SIMPLE 401k and SIMPLE IRA plans have a decrease contribution restrict than normal 401k plans. The contribution restrict for SIMPLE 401k and SIMPLE IRA plans is $16,500 in 2025. It can go as much as $17,000 in 2026.
Employers with fewer than 25 staff and bigger employers that contribute extra to the plan have a better contribution restrict. The common contribution restrict to their SIMPLE plans is $17,600 in 2025. It can go as much as $18,500 in 2026.
If you’re 50 or over by December 31, the catch-up contribution restrict in a SIMPLE 401k or SIMPLE IRA plan is $3,500 in 2025 ($3,850 at smaller employers) for ages 50-59 and 64 and over, and $5,250 for ages 60 by means of 63. It is going to be $4,000 in 2026 for ages 50-59 and 64 and over, and $5,000 for ages 60 by means of 63. The IRS might maintain the catch-up restrict for ages 60 by means of 63 at $5,250 in 2026.
Employer contributions to a SIMPLE 401k or SIMPLE IRA plan aren’t included in these limits.
2025 2026 Conventional and Roth IRA Contribution Restrict
You want taxable compensation (“earned revenue”) to contribute to a Conventional or Roth IRA however there’s no age restrict. The Conventional IRA or Roth IRA contribution restrict is $7,000 in 2025. It can enhance by $500 to $7,500 in 2026.
If you’re age 50 or over by December 31, the catch-up restrict is $1,000 in 2025. It can enhance by $100 to $1,100 in 2026.
The IRA contribution restrict is shared between the Conventional IRA and the Roth IRA. In case you contribute the utmost to a Roth IRA, you’ll be able to’t contribute the identical most once more to a Conventional IRA, and vice versa.
The IRA contribution restrict and the 401k/403b/TSP or SIMPLE contribution restrict are separate. You possibly can contribute the respective most to each a 401k/403b/TSP/SIMPLE plan and a Conventional IRA or Roth IRA.
2025 2026 Deductible IRA Revenue Restrict
The revenue restrict for taking a full deduction to your contribution to a Conventional IRA whereas collaborating in a office retirement plan in 2025 is $79,000 for single filers and $126,000 for a married couple submitting collectively. The deduction utterly phases out when your revenue goes above $89,000 for singles and $146,000 for married submitting collectively.
The total-deduction revenue limits will go up in 2026 to $81,000 for single filers and to $129,000 for a married couple submitting collectively. The deduction will utterly section out when your revenue goes above $91,000 for singles and $149,000 for married submitting collectively.
While you’re not coated in a office retirement plan however your partner is, the revenue restrict for taking a full deduction to your contribution to a Conventional IRA is $236,000 in 2025. The deduction utterly phases out when your joint revenue goes above $246,000.
The total-deduction revenue restrict will go as much as $242,000 in 2026. The deduction utterly phases out when your joint revenue goes above $252,000.
There’s no revenue restrict if neither you nor your partner is roofed by a office retirement plan.
While you exceed the revenue restrict for taking a deduction for contributing to a Conventional IRA, think about contributing to a Roth IRA as a substitute.
2025 2026 Roth IRA Revenue Restrict
The revenue restrict for contributing the utmost to a Roth IRA is determined by your submitting standing. The revenue restrict in 2025 is $150,000 for singles and $236,000 for married submitting collectively. These limits will go as much as $153,000 for singles and $242,000 for married submitting collectively in 2026.
You possibly can’t contribute something on to a Roth IRA when your revenue goes above $165,000 in 2025 for singles and $246,000 for married submitting collectively. These revenue limits will go as much as $168,000 for singles and $252,000 for married submitting collectively in 2026.
Your contribution eligibility is prorated within the revenue phase-out vary. While you exceed the revenue restrict for contributing to a Roth IRA, think about doing the backdoor Roth. See Backdoor Roth: A Full How-To.
2025 2026 Healthcare FSA Contribution Restrict
The Healthcare FSA contribution restrict is $3,300 per individual in 2025. It can go as much as $3,400 in 2026.
Some employers permit carrying over some unused quantity to the next 12 months. The utmost quantity that may be carried over to the next 12 months is about to twenty% of the contribution restrict within the present tax 12 months. In consequence, the carryover restrict is $660 per individual in 2025. It can go as much as $680 in 2026.
2025 2026 HSA Contribution Restrict
You could have a Excessive Deductible Well being Plan with no different protection to contribute to a Well being Financial savings Account (HSA). Not all high-deductible medical health insurance is HSA-eligible, however the 2025 Trump tax legislation made all Bronze plans from an ACA market HSA-eligible beginning in 2026.
Medicare or your partner having a general-purpose healthcare FSA counts as having different protection, which makes you ineligible to contribute to an HSA.
You don’t want taxable compensation (“earned revenue”) to contribute to an HSA.
The HSA contribution restrict in 2025 is $4,300 for single protection and $8,550 for household protection. These limits will go up in 2026 to $4,400 for single protection and $8,750 for household protection. The brand new limits have been introduced beforehand within the spring. See HSA Contribution Limits.
Those that are 55 or older by December 31 can contribute a further $1,000. If you’re married and each of you might be 55 or older by December 31, every of you’ll be able to contribute the extra $1,000, however the contributions should go into separate HSAs in every individual’s title.
2025 2026 Saver’s Credit score Revenue Restrict
Chances are you’ll be eligible to obtain a Retirement Financial savings Contributions Credit score (“Saver’s Credit score”) of as much as $2,000 per individual once you contribute to a retirement account or an ABLE account.
The revenue limits for receiving the credit score in 2025 for married submitting collectively are $47,500 (50% credit score), $51,000 (20% credit score), and $79,000 (10% credit score). These limits will go up in 2026 to $48,500 (50% credit score), $52,500 (20% credit score), and $80,500 (10% credit score).
The boundaries for singles are half of the bounds for married submitting collectively. The 2025 limits are $23,750 (50% credit score), $25,500 (20% credit score), and $39,500 (10% credit score). The 2026 limits might be $24,250 (50% credit score), $26,250 (20% credit score), and $40,250 (10% credit score).
The 2025 Trump tax legislation lowered the scope of the Saver’s Credit score. It can apply solely once you contribute to an ABLE account beginning in 2027. Contributions to retirement accounts will not qualify after 2026.
All Collectively
| 2025 | 2026 (Projected) | Enhance | |
|---|---|---|---|
| 401k, 403b, or 457 plan worker contributions restrict | $23,500 | $24,500 | $1,000 |
| 401k, 403b, or 457 plan ages 50-59 and 64+ catch-up contributions restrict | $7,500 | $8,000 | $500 |
| 401k, 403b, or 457 plan ages 60-63 catch-up contributions restrict | $11,250 | $11,500 | $250 |
| SIMPLE plan contributions restrict | $16,500 | $17,000 | $500 |
| SIMPLE plan contributions restrict at eligible employers | $17,600 | $18,500 | $900 |
| SIMPLE plan ages 50-59 and 64+ catch-up contributions restrict | $3,500 | $4,000 | $500 |
| SIMPLE plan ages 50-59 and 64+ catch-up contributions restrict at eligible employers | $3,850 | $4,000 | $150 |
| SIMPLE plan ages 60-63 catch-up contributions restrict | $5,250 | $5,000 or $5,250 | -$250 or None |
| Most annual additions to all outlined contribution plans by the identical employer | $70,000 | $72,000 | $2,000 |
| SEP-IRA contribution restrict | $70,000 | $72,000 | $2,000 |
| Extremely Compensated Worker definition | $160,000 | $160,000 | None |
| Annual Compensation Restrict | $350,000 | $360,000 | $10,000 |
| Conventional and Roth IRA contribution restrict | $7,000 | $7,500 | $500 |
| Conventional and Roth IRA age 50+ catch-up contribution restrict | $1,000 | $1,100 | $100 |
| Deductible IRA revenue restrict, single, energetic participant in a office retirement plan | $79,000 – $89,000 | $81,000 – $91,000 | $2,000 |
| Deductible IRA revenue restrict, married, energetic participant in a office retirement plan | $126,000 – $146,000 | $129,000 – $149,000 | $3,000 |
| Deductible IRA revenue restrict, married, partner is an energetic participant in a office retirement plan | $236,000 – $246,000 | $242,000 – $252,000 | $6,000 |
| Roth IRA revenue restrict, single | $150,000 – $165,000 | $153,000 – $168,000 | $3,000 |
| Roth IRA revenue restrict, married submitting collectively | $236,000 – $246,000 | $242,000 – $252,000 | $6,000 |
| Healthcare FSA Contribution Restrict | $3,300 | $3,400 | $100 |
| HSA Contribution Restrict, single protection | $4,300 | $4,400 | $100 |
| HSA Contribution Restrict, household protection | $8,550 | $8,750 | $200 |
| HSA, age 55 catch-up | $1,000 | $1,000 | None |
| Saver’s Credit score revenue restrict, married submitting collectively | $47,500 (50%) $51,000 (20%) $79,000 (10%) |
$48,500 (50%) $52,500 (20%) $80,500 (10%) |
$1,000 (50%) $1,500 (20%) $1,500 (10%) |
| Saver’s Credit score revenue restrict, single | $23,750 (50%) $25,500 (20%) $39,500 (10%) |
$24,250 (50%) $26,250 (20%) $40,250 (10%) |
$500 (50%) $750 (20%) $750 (10%) |
Supply: IRS Discover 2024-80, creator’s calculations.
2025 2026 Tax Brackets and Commonplace Deduction
I additionally calculated the 2026 revenue tax brackets, normal deduction, capital features tax brackets, and the reward tax exclusion restrict. Please learn 2026 Tax Brackets, Commonplace Deduction, Capital Beneficial properties, and so forth.
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