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Four-panel full-color finance comic. Panel 1: cartoon office worker pointing at a bright IRS 2026 LIMITS board. Panel 2: colorful piggy banks labeled 401k 24500 and IRA 7500. Panel 3: catch-up badges for age 50+ and ages 60-63. Panel 4: cheerful checklist with Roth and Saver credit tiles.
Four panels: cartoon worker checks IRS limit board, piggy bank stacks $24,500 / $7,500 tiles, catch-up calendar for 50+ and 60–63, checklist of Roth and Saver’s Credit ranges. · Comic: Topics / Drew’s Comic Newsroom. Source: IRS.

Finance

IRS: 401(k) limit rises to $24,500 and IRA limit to $7,500 for 2026

What happened

The IRS newsroom notice IR-2025-111 is the Finance filing: an educational explainer of the 2026 dollar limits, not a stock tip and not a trading desk. For tax year 2026, the annual elective deferral limit for employees in 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan rises to $24,500, up from $23,500 for 2025. The annual IRA contribution limit rises to $7,500 from $7,000, and the IRA catch-up for age 50 and over rises to $1,100 from $1,000—so age-50+ IRA room is $8,600 when both pieces apply.

The same notice lifts the general age-50+ catch-up for most 401(k)-style plans to $8,000 from $7,500, which means many participants age 50 and older can contribute up to $32,500 in 2026 when the base and catch-up are combined. Under SECURE 2.0, employees aged 60, 61, 62, or 63 keep a higher catch-up of $11,250 instead of the $8,000 figure. Bright green ledger tiles and yellow sticky notes. White gutters. The IRS.gov notice URL is the receipt. Skip stock picks and keep the copy educational.

Readers also get the income phase-out ranges the IRS published for traditional IRA deductions, Roth IRA contributions, and the Saver’s Credit, plus SIMPLE account limits rising to $17,000 generally ($18,100 for certain applicable SIMPLE plans). The filing is a limit board, not advice about which fund to buy.

Why it matters

A fresh IRS limit board is the strip workers actually use when they set payroll deferrals for a new tax year: $24,500 on the 401(k) tile, $7,500 on the IRA tile, catch-up badges for 50+ and 60–63, and the phase-out ranges that decide whether a Roth or deductible traditional contribution still fits. Color on the piggy banks and the checklist. White gutters. Readers get the deferral numbers, the IRA and catch-up math, the $32,500 combined age-50+ path for most 401(k)-style plans, the $11,250 ages-60–63 catch-up, the Saver’s Credit and Roth ranges as published, and the source URL on the page.

Conclusion

For 2026 the IRS raised the employee elective deferral limit for 401(k), 403(b), governmental 457, and TSP plans to $24,500, raised the IRA limit to $7,500 with a $1,100 age-50+ IRA catch-up, set the general age-50+ plan catch-up at $8,000 (up to $32,500 combined for many participants), kept the ages-60–63 higher catch-up at $11,250, and published updated phase-outs for traditional IRA deductions, Roth IRAs, and the Saver’s Credit, per IRS IR-2025-111. Educational only. Source: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

Source: IRS