On November 13, 2025, the IRS announced the 2026 limits for contributions to workplace retirement savings plans and IRAs.

Every year, the IRS announces how much people can contribute to retirement accounts, like Individual Retirement accounts (IRA’s) and 401(k) or 403(b) plans sponsored by their employers.

Taxpayers who are still wage earners should consult with their employer’s retirement plan administrator, and with their financial, legal or tax advisor for IRA contribution planning in 2026.

Highlights include:

·         The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan increases to $24,500 up from $23,500 in 2025.

·         The annual contribution limit to an IRA increases to $7,500 up from $7,000 in 2025.

·         The IRA catch‑up contribution limit for individuals aged 50 and older increases from the 2025 amount of $1,000 to $1,100, as amended under the SECURE 2.0 Act of 2022 to include an annual cost‑of‑living adjustment.

·         The catch-up contribution limit for employees who are ages 50 to 59 or 64 and older who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is $8,000. This generally allows eligible participants who are 50 to 59 or 64 and older to contribute up to $32,500.

·         A higher catch-up contribution limit of $11,250 applies for employees who will attain ages 60, 61, 62, or 63 during the calendar year and who participate in most 401(k), 403(b), governmental 457, and the federal government’s Thrift Savings Plan. Generally, this allows eligible participants who are ages 60, 61, 62, or 63 at calendar year-end to contribute up to $34,750 in 2026.

Sarah believes sound, thoughtful planning is a gift we give ourselves, our families and our community.

She is a lawyer and seasoned non-profit executive who has worked with dozens of organizations, individuals and families as a philanthropic advisor and senior trust officer. She holds the Certified Trust and Fiduciary Advisor certification and FINRA Series 7 and 66 registrations through Commonwealth Financial Network. Sarah and her husband live in Camden. The Financial Advisors of Allen Wealth Management are Registered Representatives and Investment Adviser Representatives with/and offer securities and advisory services through Commonwealth Financial Network ®, Member FINRA/SIPC, a Registered Investment Adviser. Allen Insurance and Financial, 31 Chestnut Street, Camden, ME 04843. 207-236-8376.