New Contribution Limits for Your Clients in 2026

Research shows that consumers want their financial advisors to know about taxes in addition to investments and other financial matters, even if their advisor doesn’t actually prepare their returns. We wanted to gather and highlight a few things for the upcoming tax year that you might find useful, especially as you hold your annual strategic reviews with your clients.

 

2026 Contribution Limits

 

The annual contribution limit in 2026 for 401(k)s, 403(b)s, governmental 457 plans, and the federal government’s Thrift Savings Plan has been increased to $24,500 per the IRS.

 

Contribution limits to SIMPLE retirement accounts increased to $17,000 in 2026. (However, per the SECURE Act 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts, usually plans with less than 25 employees. For 2026, this higher amount is increased to $18,100.)

 

Age 50+ Employee Catch-Up Contributions

 

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000 for 2026. (This means those who are 50 and older generally can contribute up to a total of $32,500 each year to these sorts of workplace plans in 2026.)

 

The general catch-up contribution limit for those 50+ who participate in SIMPLE plans is increased to $4,000 in 2026. (However, per the SECURE Act 2.0, a different catch-up limit applies to certain applicable SIMPLE plans, usually plans with less than 25 employees. Their maximum catch-up for those plans remains $3,850, except for employees aged 60, 61, 62 and 63, see below.)

 

“Super” Catch-Up Contributions for Ages 60, 61, 62, and 63

 

Under a change made in the SECURE Act 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in 401(k) and similar workplace plans. For 2026 for these four ages, this higher catch-up contribution limit remains $11,250, rather than the $8,000 for everyone else who is 50 or older.

 

For applicable SIMPLE plans, the maximum catch-up for employees ages 60, 61, 62 and 63 remains $5,250 for 2026.

 

Roth Catch-Up Contributions For Those With High Incomes

 

In one of the biggest tax changes for 2026, employees earning $150,000 or more in the prior tax year (in this case, their earnings for 2025) must make catch-up contributions into Roth (after-tax) accounts, rather than on a tax-deferred basis into a traditional 401(k) or similar account. If an employer doesn’t offer that option, they won’t be able to make catch-up contributions.

 

Temporary Senior “Bonus” Deduction for 65+

 

Mistakenly referred to as a Social Security tax cut, the OBBBA established a temporary income tax deduction for people age 65 or older. For tax years 2025 through 2028, $6,000 can be deducted per eligible filer—provided their modified adjusted gross income does not exceed $75,000 for single filers, or $150,000 for those married filing jointly, when it phases out. This deduction can be taken whether or not your client itemizes or takes the standard deduction.

 

2026 Income Ranges for IRAs, Roths

 

The limit on annual contributions to an IRA in 2026 is increased to $7,500, subject to income limits below. (The income ranges are the same for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and/or to claim the Saver’s Credit).

 

Here are the income phase‑out ranges for 2026:

• For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000 for 2026.
• For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000. (For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.)
• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000.

 

Annuities can be purchased on a deferred or after-tax basis. Be sure to reach out to Quantum to discuss how taxes and RMDs work when it comes to various types of annuities and insurance products at 800.440.1088. Ask us for a case design. We’re here to help!

 

For advisor use only based on sources deemed reliable. This article is provided for informational purposes only and is not intended as tax, legal, or financial advice.

 

Sources:

https://www.thinkadvisor.com/2025/11/13/irs-sets-401k-ira-contribution-limits-for-2026/

https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

https://www.jacksonhewitt.com/tax-help/tax-tips-topics/filing-your-taxes/new-senior-tax-deduction/