By Ian Berger, JD
IRA Analyst
The IRS has released the cost-of-living adjustments (COLAs) for retirement accounts for 2026, and many of the dollar limits will increase next year.
Retirement Plans
The elective deferral limit for employees who participate in 401(k), 403(b) and 457(b) plans is increased to $24,500, up from $23,500. The catch-up contribution limit for those age 50 or over jumps to $8,000, increased from $7,500. The “super catch-up” limit for individuals aged 60, 61, 62 and 63 remains $11,250.
Starting in 2026, certain high-paid participants in 401(k), 403(b) and governmental 457(b) plans who wish to make catch-up contributions must make them to Roth accounts within the plan. This requirement will apply to employees who had 2025 W-2 (Box 3) wages with the current employer that exceeded $150,000.
SEP and SIMPLE IRA Plans
The maximum SEP contribution will increase to $72,000 from $70,000. The cap on compensation that can be taken into account for calculating SEP and other retirement plan contributions moves up to $360,000 from $350,000.
The SIMPLE elective deferral limit is increased as well, going to $17,000, up from $16,500. Individuals in certain SIMPLE plans, including those sponsored by businesses with 25 or fewer employees, can contribute a higher amount. For 2026, this higher amount is $18,100, increased from $17,600.
The general catch-up contribution limit that applies for SIMPLE plan participants aged 50 and over jumps to $4,000, up from $3,500. However, those aged 50 and over who participate in certain SIMPLE plans, including those sponsored by businesses with 25 or fewer employees, are limited to $3,850, the same amount in effect for 2025. (This appears to be a quirk in the law that may need to be fixed by Congress.) The “super catch-up” limit for SIMPLE participants aged 60, 61, 62 and 63 remains $5,250.
IRA Contributions
The IRA contribution limit increases to $7,500, increased from $7,000. The IRA catch-up contribution limit is now indexed for inflation. For the first time, that limit is increased, jumping to $1,100, from $1,000. This will allow those who are aged 50 or over to contribute $8,600 to an IRA for 2026, up from $8,000.
The phase-out range for savers making contributions to a Roth IRA is increased to $153,000-$168,000 for single filers, up from $150,000-$165,000. For those who are married filing jointly, the income phase-out range is increased to $242,000-$252,000, up from $236,000-$246,000.
Phaseout ranges for active participants in employer plans looking to make deductible traditional IRA contributions have also been increased. For single individuals covered by an employer retirement plan, the phase-out range is $81,000-$91,000 for 2026, up from $79,000-$89,000. For married couples filing jointly, if the spouse making the IRA contribution is covered by an employer retirement plan, the phase-out range is increased to $129,000-$149,000, up from $126,000-$146,000. For those who are not covered by an employer retirement plan but who are married to someone who is covered, the phase-out range goes up to $242,000-$252,000, increased from $236,000-$246,000.
Qualified Charitable Distributions
The 2026 limit for qualified charitable distributions (QCDs) is increased to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest entity goes up to $55,000, up from $54,000.
More details on the COLAs for 2026 can be found in IRS Notice 2025-67.
If you have technical questions you would like to have answered, be sure to submit them to mailbag@irahelp.com, to be answered on an upcoming Slott Report Mailbag, published every Thursday.
https://irahelp.com/ira-and-retirement-plan-dollar-limits-increased-for-2026/