Excellent news for eager retirement savers!

Contribution limits for IRAs and 401(k)s are getting another bump for 2026, per an announcement from the IRS last Thursday.

Sure, it’s not the kind of headline that gets front-page hype, but for anyone trying to build a solid golden years cushion, these little annual bumps really DO add up. (And you all know how much we love compound interest!)

In case you missed it, here’s the brief breakdown.

Starting next year, you’ll be able to put away up to $24,500 into your 401(k) — that’s $1,000 more than this year!

Before you ask… yes, the same increase applies to 403(b)s, governmental 457 plans, and the federal Thrift Savings Plan.

Of course, it’s not “life changing” but in personal finance math, it’s definitely meaningful.

If you’re 50 or older, you’ll also be glad to hear that catch-up contributions will jump to $8,000 (up from $7,500.) And if you’re between 60 and 63, even better news! Thanks to the Secure Act 2.0, you can also take advantage of the special expanded catch-up of $11,250 .

So, in theory… Total possible max cash stash for a 62-year-old next year? $35,750. That’s not bad at all!

Don’t worry. IRAs are also getting their moment.

In 2026, the new limit rises to $7,500, (a $500 increase) And if you're 50 or older, your catch-up rises to $1,100.

However, one thing to keep an eye on is that Roth IRA income thresholds are shifting upward, which may affect eligibility depending on your filing status and whether you’re covered by a workplace plan. Nothing dramatic, but worth a check when 2026 rolls around.

Now, if your workplace offers a SIMPLE IRA, your limit rises to $17,000, with some accounts going as high as $18,100. Meanwhile, catch-up contributions here jump to $4,000, while those aged 60–63 keep a larger $5,250 extra allowance.

Finally, even more good news for low and moderate-income savers. The Saver’s Credit income limits are increasing too. If you aren’t familiar with this yet, this is essentially free money — a government-provided match worth up to $1,000 for individuals or $2,000 for married couples.

And thanks to new higher income thresholds, this means more people can qualify. More people qualifying = more people keeping money in their pockets.

Oh and just a warning, if you made more than $145,000 in FICA wages in the prior year, there’s a twist.

Starting in 2026, any catch-up contributions you make will automatically be treated as Roth contributions — meaning they’ll be taxed upfront.

Again, not good, not bad… just different. But definitely something to know so you don’t get a surprise come tax season.

So, small news but great news. Whether you’re just starting your retirement journey or already in your catch-up era, 2026 gives you a little extra breathing room.

Think of it this way — every extra dollar you put into retirement is a dollar that goes to YOU instead of the IRS. Future-you gets the reward, not the tax man — and that’s always a win in our books. 🥂