Wealth In-Formation: 2026 Contribution Limits for Retirement Accounts
Wealth is always in formation, and the information that you receive is critical to optimizing your wealth. One of the most important pieces of information for retirement savers each year comes from the IRS, which sets the limits for how much you can save in tax-advantaged accounts. For people committed to building their nest eggs, you’ll be happy to hear that 2026 outshines 2025, as contribution limits have gone up across the board. I encourage you to maximize your opportunity: your future will thank you!
Here are the updates for various plans (1):
- 401(k), 403(b), governmental 457, and the federal government’s Thrift Savings Plans: Annual limit rises to $24,500, up from $23,500 in 2025.
- Catch-up contributions for 401(k)s (age 50+): Boosted to $8,000, allowing a total of $32,500 for mature workers.
- Traditional and Roth IRAs (for those under age 50): Contribution limits increase to $7,500, up from $7,000.
- Catch-up contributions for IRAs and Roth IRAs (age 50+): Now $1,100, up from $1,000. This means that for those who turn 50 or older in 2026, you may contribute a maximum of $8,600 to your IRA or Roth IRA
The adjustments are designed to keep pace with inflation and encourage long-term savings. We point out to our clients that even modest increases can compound into significant gains over time.
For those committed to saving, the IRS has opened the door to a bigger game. The opportunity is clear: Build Wealth That Sticks in 2026.
Wealth InFormation Lady Tips:
- Automate contributions: Set up automatic transfers so you never miss a chance to save.
- Dollar Cost Average: Dollar cost averaging helps reduce risk by spreading out your contributions over time, like dividing your maximum annual contribution by a weekly, bi-weekly or monthly amount. Instead of trying to guess the perfect moment to invest, you put in a commit to a fixed amount regularly. This means you buy more shares when prices are low and fewer when prices are high, which smooths out the ups and downs of the market. Over time, this steady approach can lower your average cost per share and make it easier to build wealth without worrying about short-term market swings, which are inevitable.
- Catch-up wisely: If you’re 50+, use the expanded catch-up provisions to supercharge your retirement account.
- Review annually: Revisit your savings plan each year to stay aligned with new IRS limits.
Wealth is always in formation, evidenced by new contributions limits released each year for retirement accounts.
LouAnn Schulfer of Schulfer & Associates, LLC Wealth Management can be reached at (715) 343-9600 or louann.schulfer@lpl.com TheWealthInformationLady.com SchulferAndAssociates.com
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.
Authentically written by The Wealth InFormation Lady: no Artificial Intelligence and no ghostwriters, because in Wealth Management your trust and integrity are earned. Authentic Intelligence matters
