Notice 2025-67: Increased retirement plan contribution limits for 2026

The IRS today released Notice 2025-67, providing the dollar limitations for qualified retirement plans for tax year 2026.

Changes for 2026

A related IRS release—IR-2025-111 (November 13, 2025)—highlights the following changes for 2026 (any changes in amounts that applied for 2025 are shown in brackets):

• The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $24,500 [up from $23,500 for 2025].
• The limit on annual contributions to an individual retirement arrangement (IRA) is increased to $7,500 [up from $7,000 for 2025].
  • The IRA catch‑up contribution limit for individuals aged 50 and over, which was amended under the SECURE 2.0 Act of 2022 to include an annual cost‑of‑living adjustment, is increased to $1,100 [up from $1,000 for 2025].
  • The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000 [up from $7,500 for 2025]. Therefore, participants in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026.
  • Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62, and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 (instead of $8,000).
• The income ranges all increased for 2026 for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the Saver’s Credit.
• Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) The phase‑out ranges for 2026 are as follows:
  • For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000 [up from between $79,000 and $89,000 for 2025].
  • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000 [up from between $126,000 and $146,000 for 2025].
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000 [up from between $236,000 and $246,000 for 2025].
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
• Additional limitations for 2026 for Roth IRAs, the Saver’s Credit, and SIMPLE (Savings Incentive Match Plan for Employees) retirement accounts include:
  • The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household [up from between $150,000 and $165,000 for 2025]. For married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
  • The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly [up from $79,000 for 2025]; $60,375 for heads of household [up from $59,250 for 2025]; and $40,250 for singles and married individuals filing separately [up from $39,500 for 2025].
  • The amount individuals can generally contribute to their SIMPLE retirement accounts is increased to $17,000 [up from $16,500 for 2025]. Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is increased to $18,100 [up from $17,600 for 2025].
  • The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is increased to $4,000 [up from $3,500 for 2025]. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62, and 63 who participate in SIMPLE plans, which remains $5,250.