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December 9, 2025

Gary Gruner

Principal, Tax

Atlanta, GA

678-510-2887

[email protected]

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The IRS has announced new benefit and contribution limits for qualified retirement plans in 2026, continuing its tradition of annual adjustments due to factors such as inflation, updated tax brackets, new legislation and changing economic conditions.

2026 adjustments listed below reflect IRS Notice 2025-67, which was published on November 13, 2025. A relatively new adjustment category affects employees aged 60-63 who became eligible under the SECURE ACT 2.0 of 2022 for catch-up contributions beyond those available for employees who are at least 50 years old.

Windham Brannon publishes details about IRS updates on an ongoing basis to keep clients and friends of the firm current with helpful information.

401(k), 403(b) and 457(b) contributions

  • The contribution limit to individual 401(k), 403(b), most 457 plans and the government’s Thrift Savings Plan was raised from $23,500 in 2025 to $24,500 in 2026.
  • The catch-up contribution for employees aged 50 and over was raised from $7,500 in 2025 to $8,000 in 2026, while the contribution limit for employees aged 60-63 remains the same at $11,250.
  • Beginning in 2026, as legislated in SECURE Act 2.0, catch-up contributions for employees who earned at least $145,000 the previous year must be made to a Roth 401(k), 403(b) or 457(b) account. While these contributions will not reduce taxable income, growth and qualified withdrawals will be tax-free.

Traditional and Roth IRA contributions

  • The annual contribution limit to traditional and non-traditional Roth IRAs was raised from $7,000 in 2025 to $7,500 in 2026. Eligibility for Roth IRA contributions is affected by the employee’s income level.
  • The IRA catch-up contribution limit for individuals aged 50 and over was raised from $1,000 in 2025 to $1,100 in 2026.

Phaseout range for traditional IRAs

  • The phaseout range for single taxpayers in a workplace retirement plan was raised from between $79,000 – $89,000 in 2025 to $81,000 – $91,000 in 2026.
  • The phaseout range for a married taxpayer filing jointly, when the spouse making the contributions is covered by a workforce retirement plan, went up from $126,000 – $146,000 in 2025 to $129,000 – $149,000 in 2026.
  • A married taxpayer filing jointly who is not covered by a workplace plan but whose spouse is covered sees his/her contribution phase out between $242,000 and $252,000 in 2026 (an increase from $236,000 – $246,000 last year).
  • Finally, the phaseout range for a married individual filing separately who is covered by a workplace retirement plan remains the same in 2026 at $0 – $10,000.

Phaseout range for Roth IRAs

  • The phaseout range for a single individual or head of household contributing to a Roth IRA went up from $150,000 – $165,000 in 2025 to $153,000 – $168,000 in 2026.
  • The phaseout range for a married individual filing jointly has been raised from $236,000 – $246,000 in 2025 to $242,000 – $252,000 in 2026.
  • Finally, the phaseout range for married individuals filing separately will stay the same from $0 – $10,000.

SIMPLE contributions

  • The SIMPLE IRA contribution limit had been raised from $16,500 in 2025 to $17,000 in 2026.
  • The catch-up contribution for employees over 50 was raised from $3,500 in 2025 to $4,000 in 2026 while the catch-up contribution for employees aged 60-63 remains the same at $5,250.

Saver’s Credit (Retirement Savings Contribution Credit) Adjusted Gross Income Limits

  • The income limit for married couples filing jointly to be eligible for the saver’s credit went up from $79,000 in 2025 to $80,500 in 2026.
  • The income limit for individuals filing as head of household was raised from $59,250 in 2025 to $60,375 in 2026.
  • The income limit for singles or married individuals filing separately went up from $39,500 in 2025 to $40,250 in 202

Additionally:

  • The annual 401(a)(17) compensation limit to calculate contributions and benefits for retirement plans was raised from $350,000 in 2025 to $360,000 in 2026.
  • The defined benefit plan annual benefit limit was raised from $280,000 in 2025 to $290,000 in 2026.
  • The defined contribution plan annual contribution limit will be raised from $70,000 in 2025 to $72,000 in 2026.
  • The taxable wage for Social Security has been adjusted from $176,100 in 2025 to 184,500 in 2026.

Please contact Gary Gruner or any of Windham Brannon’s professionals to determine your eligibility to contribute to an applicable retirement plan.