IRS raises 401(k), IRA limits for 2026
The IRS announced on Nov. 13, 2025, that the maximum employee contribution to 401(k), 403(b) and most 457 plans will rise to $24,500 in 2026, with the age‑50 catch‑up increasing to $8,000. The agency also set the 2026 IRA limit at $7,500 and the IRA catch‑up at $1,100, while keeping the special age 60–63 catch‑up at $11,250. The nationwide changes directly affect Twin Cities workers and retirees saving in tax‑advantaged plans.
📌 Key Facts
- 401(k)/403(b)/457 employee limit: $24,500 for 2026 (up from $23,500 in 2025)
- Age‑50 catch‑up for workplace plans: $8,000 in 2026 (up from $7,500)
- Age 60–63 additional catch‑up: up to $11,250 (unchanged)
- IRA contribution limit: $7,500 in 2026 (up from $7,000); IRA catch‑up: $1,100