The 2026 cost-of-living adjustments (COLAs) that affect pension plan dollar limitations and other retirement-related provisions have been released by the IRS. In general, many of the pension plan limitations will change for 2026 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged.
The SECURE 2.0 Act (P.L. 117-328) made some retirement-related amounts adjustable for inflation. These amounts, as adjusted for 2026, include:
- The catch-up contribution amount for IRA owners who are 50 or older is increased from $1,000 to $1,100.
- The amount of qualified charitable distributions from IRAs that are not includible in gross income is increased from $108,000 to $111,000.
- The limit on one-time qualified charitable distributions made directly to a split-interest entity is increased from $54,000 to $55,000.
- The dollar limit on premiums paid for a qualifying longevity annuity contract (QLAC) remains $210,000.
Highlights of Changes for 2026
The contribution limit has increased from $23,500 to $24,500 for employees who take part in:
- 401 (k)
- 403 (b)
- most 457 plans, and
- the federal government’s Thrift Savings Plan
The annual limit on contributions to an IRA increased from $7,000 to $7,500.
The catch-up contribution limit for individuals aged 50 and over for employer retirement plans (such as 401(k), 403(b), and most 457 plans) has increased from $7,500 to $8,000.
The income ranges increased for determining eligibility to make deductible contributions to:
- IRAs,
- Roth IRAs, and
- to claim the Saver’s Credit.
Phase-Out Ranges
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. The deduction phases out if the taxpayer or their spouse takes part in a retirement plan at work. The phase-out depends on the taxpayer’s filing status and income.
- For single taxpayers covered by a workplace retirement plan, the phase-out range is $81,000 to $91,000, up from $79,000 to $89,000.
- For joint filers, when the spouse making the contribution takes part in a workplace retirement plan, the phase-out range is $129,000 to $149,000, up from $126,000 to $146,000.
- For an IRA contributor who is not covered by a workplace retirement plan but their spouse is, the phase-out range is $242,000 to $252,000, up from $236,000 to $246,000.
- For a married individual filing separately who is covered by a workplace plan, the phase-out range remains $0 to $10,000.
The phase-out ranges for Roth IRA contributions are:
- $153,000 to $168,000 for singles and heads of household,
- $242,000 to $252,000 for joint filers,
- $0 to $10,000 for married separate filers.
Finally, the income limits for the Saver’s Credit are:
- $80,500 for joint filers,
- $60,375 for heads of household,
- $40,250 for singles and married separate filers.
