2026 Retirement Plan Updates from IRS
Capstone Investment Financial Group
IRS just announced increases to retirement plan contributions for 2026. Some increases were not as big as previous years, however there was an increase for IRA and Roth IRA which we didn’t get last year. Also, for those
over 50 years old, the catch-up contribution increased from $1,000 to $1,100.
Below are the increases per the IRS for 2026:
Type of Account | 2025 Limit | 2026 Limit |
Traditional IRA | $7,000 | $7,500 |
Roth IRA | $7,000 | $7,500 |
HSA – Single | $4,300 | $4,400 |
HSA – Family | $8,500 | $8,750 |
SIMPLE IRA | $16,500 | $17,000 |
SEP IRA | $70,000 | $72,000 |
*Depending on Defined Contribution (401k), higher
limits maybe allowed
*Some of the above have income requirements to meet limits above
The IRS allows a “catch up” contributions for IRA’s of an additional $1,100 to those 50 and over, $3,500 for SIMPLE IRA and an extra $8,000 in a 401(k) and 403(b). New in 2025, However, investors in 401ks age 60 to 63 can save $11,250 for catch-up contributions based on changes enacted via Secure
2.0.
IRA’s have income limits for who can contribute and those income phase-out ranges have also been increased.
Filer
| 2025 Phase Out | 2026 Phase Out |
Traditional IRA | | |
Single Filer w/ Plan @ work | $79,000-$89,000 | $81,000-$91,000 |
Married Joint w/ Plan @ work | $126,000-$146,000 | $129,000-$149,000 |
Married Joint Only 1 w/ Plan Wk | $236,000-$246,000 | $242,000-$252,000 |
Roth IRA | | |
Single and Head of Household | $150,000-$165,000 | $153,000-$168,000 |
Married Joint | $236,000-$246,000 | $242,000-$252,000 |
As always, would love to talk with you about how to implement these changes into your financial plan to provide a clear path to your financial goals.
**This is not deemed to be Tax or Legal Advise**
Source:
IRS announces Roth IRA income limits for 2026
WASHINGTON The Internal Revenue
Service today announced cost of living adjustments applicable to dollar limitations for pen
