2026 Retirement Contribution Limits Rise: 401(k) Jumps to $24,500, IRA to $7,500
The IRS raised retirement savings limits for 2026, allowing workers to contribute $24,500 to 401(k) plans (up from $23,500) and $7,500 to IRAs (up from $7,000). Workers age 50+ gain higher catch-up contributions.
The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025. The IRS has also raised the annual limit on traditional and Roth IRA contributions to $7,500, up from $7,000 in 2025.
Catch-Up Contributions Increase
The annual elective deferral limit for 401(k) plan employee contributions is increased to $24,500 in 2026, with employees age 50 or older able to contribute up to an additional $8,000 for a total of $32,500. SECURE Act 2.0 introduces an enhanced catch-up contribution for savers ages 60–63, where eligible individuals can contribute an additional $11,250 for 2026, 50% more than the standard catch-up amount.
The 2026 catch-up contribution limit for individuals aged 50 and over increased slightly to $1,100 in 2026, up from $1,000 in the previous year.
For foreign workers and expats: If your employer offers a 401(k) plan, these higher limits give you a powerful way to reduce US taxable income and defer taxes on earnings. Non-residents and visa holders should verify their plan eligibility and understand how US retirement contributions interact with their home country tax obligations. Self-employed visa holders can explore Solo 401(k) or SEP-IRA options with these updated limits.
Sources
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