As 2025 draws to a close, we want to share the new contribution limits for 2026! In November 2025, the IRS shared the changes below. These updates are aimed at providing greater financial security and incentives for saving, especially for those nearing retirement.
401(k)s and Equivalent
In 2026, the employee deferral limit for 401(k), 403(b), Thrift Savings Plan (TSP) and 457 plans will increase to $24,500 from $23,500 in 2025.
Additionally, individuals aged 50 and older will continue to be able to leverage a catch up contribution that will increase to $8,000 in 2026. The increased catch up contribution for those aged 60, 61, 62 and 63 remains unchanged at $11,250.
While the time value of money is paramount for long term investing, the ability to utilize the larger catch-up amounts offers individuals an avenue to assist with bolstering retirement savings as they near financial independence.
IRAs
2026 IRA (Traditional & Roth) contribution limits have increased to $7,500, up from $7,000 in 2025. Individuals aged 50 and older can contribute up to an additional $1,100 catch-up contribution.
HSAs
To a lesser degree of significance, Health Savings Account (HSA) contributions will also increase in 2026. The limit for self-only coverage will rise to $4,400, up from $4,300 in 2025. For family coverage, the limit will increase to $8,750, up from $8,550. The current $1,000 catchup contribution for individuals aged 55 or older remains unchanged.
Although HSAs are primarily intended for health-related expenses, they also offer tax-deferred growth, making them a valuable tool for long-term savings.
As always, we recommend connecting with your planner to see how these new contribution limits impact you.
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