~Coach Holdren
Published: November 13, 2025
Source: IRS.gov – 401(k) limit increases to $24,500 for 2026; IRA limit increases to $7,500
The IRS just released the 2026 retirement contribution limits, and here is the bottom line: you can save more next year. That means more leverage, more compounding, and greater financial independence.
Let’s break this down in plain English and make sure you know exactly how much you can contribute and how to use these changes to your advantage.
The Big Wins for 2026
The IRS adjusts these limits every year to keep pace with inflation. The good news is that 2026 provides a larger opportunity to invest in your future.
Here’s what changed:
- 401(k), 403(b), 457, and TSP plans:
The contribution limit increases to $24,500, up from $23,500 in 2025. - Catch-up contributions (age 50+):
You can now add an extra $8,000, up from $7,500.
Total potential contribution: $32,500. - Super catch-up for ages 60–63:
Remains at $11,250, giving you a total possible contribution of $35,750. - IRA contributions:
The annual limit increases to $7,500, up from $7,000. - IRA catch-up (age 50+):
Increased to $1,100, bringing your total to $8,600. - SIMPLE IRAs and SIMPLE 401(k)s:
The annual limit increases to $17,000, or $18,100 for certain plans under the SECURE 2.0 Act. - SIMPLE catch-ups:
The standard catch-up limit increases to $4,000, and the higher limit for ages 60–63 remains $5,250.
2026 Contribution Limits at a Glance
| Plan Type | Under Age 50 | Age 50+ (Standard Catch-Up) | Ages 60–63 (Enhanced Catch-Up) |
|---|---|---|---|
| 401(k), 403(b), 457, TSP | $24,500 | $32,500 ($24,500 + $8,000) | $35,750 ($24,500 + $11,250) |
| Traditional / Roth IRA | $7,500 | $8,600 ($7,500 + $1,100) | Same as 50+ |
| SIMPLE IRA / SIMPLE 401(k) | $17,000 | $21,000 ($17,000 + $4,000) | $22,250 ($17,000 + $5,250) |
| Special SIMPLE Plans (SECURE 2.0) | $18,100 | $21,950 ($18,100 + $3,850) | $23,350 ($18,100 + $5,250) |
Income Phase-Out Ranges for 2026
These numbers determine whether you can deduct a traditional IRA or contribute directly to a Roth IRA.
| Filing Status | Traditional IRA (if covered by workplace plan) | Roth IRA |
|---|---|---|
| Single | $81,000 – $91,000 | $153,000 – $168,000 |
| Married Filing Jointly (covered spouse) | $129,000 – $149,000 | $242,000 – $252,000 |
| Married Filing Jointly (non-covered spouse) | $242,000 – $252,000 | $242,000 – $252,000 |
| Married Filing Separately | $0 – $10,000 | $0 – $10,000 |
Coach Holdren’s Take
These are not just numbers. They are opportunities to build wealth that your future self will thank you for.
Every dollar you shelter in a tax-advantaged account compounds with less friction. Every increase in these limits is the IRS giving you a chance to keep more of what you earn and grow it faster.
Here is your action plan:
- Check your contribution settings.
Log in to your 401(k) or TSP account and make sure your paycheck deferrals will align with the new limits by January. - If you are over 50, use the catch-up.
It is not a “bonus.” It is your acceleration lane toward financial freedom. - If you are between 60 and 63, maximize your “super catch-up.”
This short window lets you supercharge savings right before retirement. - Review your Roth eligibility.
The income thresholds are shifting. If you were phased out before, 2026 may open the door again. - Automate your increases.
Do not rely on memory. Set your contributions to rise automatically with each raise or at the start of the year.
The Bottom Line
The 2026 updates give savers more breathing room, and that adds up to significant gains over time.
Whether you are 30 and building your foundation or 60 and racing toward the finish line, remember this:
Discipline compounds. Consistency compounds. Your future compounds.
Make the most of these new limits, and remember that the best time to take control of your financial future is always now.
Transitioning From Limits to Lasting Habits
Understanding the IRS contribution limits is an important first step, but the numbers alone are not what create financial freedom. What truly moves the needle are the habits behind the numbers—the routines, systems, and decisions that determine whether you actually take advantage of these limits year after year. That is why we created The Core Financial Habits series. It is designed to help you build the four foundational behaviors that drive long-term wealth: consistent saving, intentional spending, strategic investing, and ongoing money management. If you are ready to move beyond information and start building the habits that make financial independence inevitable, begin with Part 1 of the series here: Developing the Core Financial Habits – Introduction
Coach Holdren’s S.E.M. Calculator
Once those habits are in place, you can take the next step by using Coach Holdren’s S.E.M. Calculator to project your personal timeline to financial freedom. By entering your savings rate, earnings, and investment assumptions, the calculator shows you how the small, consistent actions you take today compound into long-term results. It reveals how your daily decisions shape your overall trajectory and helps you see, with real numbers, how soon you can achieve financial freedom or full independence.
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