The Internal Revenue Service announced on Thursday that it will raise the contribution limits for popular retirement savings accounts in 2026, offering millions of Americans a chance to stash more money for their future.
Under Notice 2025-67, the maximum contribution for 401(k), 403(b), and governmental 457 plans will climb to $24,500, up from $23,500 in 2025. The increase also applies to participants in the federal government’s Thrift Savings Plan, the IRS confirmed.
The adjustment, part of the agency’s annual inflation review, signals relief for workers striving to build long-term financial security amid a volatile economy.
Catch-Up Contributions Also Rise for Older Workers
The IRS also unveiled higher catch-up contribution limits—a key advantage for older Americans hoping to accelerate savings before retirement.
Employees aged 50 and older will now be able to contribute an additional $8,000, up from $7,500 in 2025. That means eligible savers can set aside up to $32,500 annually starting in 2026.
Meanwhile, the enhanced catch-up threshold for workers aged 60 through 63 remains unchanged at $11,250, maintaining a special incentive for those in their final working years to bolster their nest eggs.
