Retirement rule changes for 2026 raise contribution limits.

The IRS raised 2026 contribution limits for several retirement accounts, including a $24,500 cap for 401(k)s and higher IRA limits. The SECURE 2.0 Act also requires some high‑income catch-up contributions to be made as Roth contributions.

The IRS issued adjustments to retirement account rules and contribution limits for 2026. Annual increases are typical as limits are adjusted for cost-of-living changes. The updates affect workplace plans, IRAs, Roth income phase-outs, small‑employer plans, and rules added by the SECURE 2.0 Act. The article reports higher limits for HSAs as well. Key details: - The 401(k) elective deferral limit increased to $24,500 for 2026, up $1,000 from 2025. - The 401(k) catch-up contribution for employees age 50 and over rose to $8,000, which allows up to $32,500 in total contributions when combined with the regular limit. - Total IRA contributions are limited to $7,500 for 2026, up $500 from 2025; the IRA catch-up amount is $1,100, allowing $8,600 total for those 50 and older. - Roth IRA phase-out ranges moved to $153,000–$168,000 for single filers and heads of household, and $242,000–$252,000 for married couples filing jointly. - Under the SECURE 2.0 Act, certain catch-up contributions by savers with FICA wages over $150,000 in 2025 must be made to Roth accounts, which affects the tax treatment of those contributions. - Self-employed and SEP-IRA combined employer contribution limits rose to $72,000 for 2026, subject to a 25% of compensation cap; SIMPLE plan individual limits increased to $17,000 with catch-up contributions capped at $4,000. Summary: These adjustments raise annual contribution limits across multiple account types and change the tax treatment of some catch-up contributions under SECURE 2.0. Undetermined at this time.