The Internal Revenue Service (IRS) has released its updated retirement savings limits for 2026, announcing higher contribution caps for a range of tax-advantaged accounts.

Why It Matters

In a news release issued Thursday, the agency said individuals would be able to set aside more money in their workplace retirement plans next year, marking the largest increase in two years.

What To Know

According to the IRS, the maximum amount workers can contribute to their 401(k) plans will rise to $24,500 in 2026, up from $23,500 in 2025. The same limit applies to 403(b) accounts, most 457 plans and the federal Thrift Savings Plan. The agency said that the increase was double the $500 annual adjustments seen in both 2024 and 2025.

The IRS also outlined new catch-up contribution rules for older

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