IRA contribution 2026: The US federal government’s tax collection and enforcement agency, the Internal Revenue Service (IRS), on Thursday, 13 November 2025, announced the new retirement contribution limits, according to the official release.
According to the official data, an individual can now contribute $500 more to their Individual Retirement Account (IRA) from 2026. The IRA contribution was increased to $7,500 per year, compared to their earlier $7,000 levels in 2025.
The IRS also increased the IRA catch-up contributions for investors with the age of 50 years and above to $1,100, compared to its current $1,000 level.
“The limit on annual contributions to an IRA is increased to $7,500 from $7,000. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment is increased to $1,100, up from $1,000 for 2025,” the IRS said in its official release.
The annual individual’s contribution limit also applies to contributions to traditional and Roth IRAs.
IRS increases 401(k) limits
In its filing on Thursday, the Internal Revenue Service (IRS) also announced that individuals can contribute $24,500 per year in 2026 to their 401(k) plans, compared to their current level of $23,500 in 2025.
According to a report from the news portal CNBC, some investors can deduct their pre-tax IRA contributions depending on their income and whether they themselves or their spouse has access to a retirement plan.
In the announcement, the IRS also increased the phase-out ranges for the IRA deductibility in 2026.
For single taxpayers who are covered under a workplace retirement plan, the IRS phase-out range has been increased to range between $81,000 and $91,000 for 2026, compared to their $79,000 and $89,000 range in 2025.
In the case of married couples filing jointly, if the spouse making the IRA contribution is covered under the retirement plan, then the phase-out range has been increased to between $129,000 and $149,000, compared to $126,000 and $146,000 in 2025.
If an IRA contributor is not covered under a workplace retirement plan and is married to someone who is covered, then the phase-out range is increased to $242,000 and $252,000 in 2026, compared to $236,000 and $246,000 in 2025.
Lastly, if any married individual is filing a separate return and is covered by a retirement plan, the phase-out range will not be subject to an annual cost-of-living adjustment and remains between $0 and $10,000, according to the official announcement.
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Key Takeaways
- An individual’s IRA contribution limit increased to $7,500/year for 2026.
- IRS also increased the IRA catch-up contributions for investors with the age of 50 years and above to $1,100.
- Individuals can contribute $24,500 per year in 2026 to their 401(k) plans.
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