ComplianceTax & AccountingNovember 18, 2025

IRS announces 2026 retirement plan cost-of-living adjustments

By: Michael Schiller

IRA regular and catch-up contribution limits will increase

On November 13, 2025, the Internal Revenue Service issued Notice 2025-67 announcing retirement plan cost-of-living adjustments (COLAs) for 2026. In addition to an increase in the traditional and Roth IRA regular and catch-up contribution limits, the income thresholds that determine traditional IRA deductibility, Roth IRA eligibility, and saver’s tax credit eligibility will increase. Those limits, as well as simplified employee pension (SEP) limits, general elective deferral limits, and Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA deferral limits for 2026 are as follows:

IRA Contribution Limits
Tax Year Standard Limit Younger Than Age 50 Catch-Up Contribution Age 50 or Older Contribution Limit Age 50 or Older
2025 $7,000 $1,000 $8,000
2026 $7,500 $1,100 $8,600
Traditional IRA Deductibility MAGI Thresholds *
Filing Status Tax Year Full Deduction Partial Deduction No Deduction
Single 2025 ≤ $79,000 Between $79,000 and $89,000 ≥ $89,000
2026 ≤ $81,000 Between $81,000 and $91,000 ≥ $91,000
Married, Joint 2025 ≤ $126,000 Between $126,000 and $146,000 ≥ $146,000
2026 ≤ $129,000 Between $129,000 and $149,000 ≥ $149,000
Married, Joint (not active participant but spouse is) 2025 ≤ $236,000 Between $236,000 and $246,000 ≥ $246,000
2026 ≤ $242,000 Between $242,000 and $252,000 ≥ $252,000
Married, Separate 2025 N/A < $10,000 ≥ $10,000
2026 N/A < $10,000 ≥ $10,000
*Applies to individuals that actively participate in an employer sponsored retirement plan.
Roth IRA Eligibility MAGI Thresholds
Filing Status Tax Year Full Contribution Partial Contribution No Contribution
Single 2025 ≤ $150,000 Between $150,000 and $165,000 ≥ $165,000
2026 ≤ $153,000 Between $153,000 and $168,000 ≥ $168,000
Married, Joint 2025 ≤ $236,000 Between $236,000 and $246,000 ≥ $246,000
2026 ≤ $242,000 Between $242,000 and $252,000 ≥ $252,000
Married, Separate 2025 N/A < $10,000 ≥ $10,000
2026 N/A < $10,000 ≥ $10,000
Saver's Tax Credit MAGI Thresholds 2026
Filing Status Credit is 50% of Contribution if Income is: Credit is 20% of Contribution if Income is: Credit is 10% of Contribution if Income is: No Credit if Income is:
Married, Joint ≤ $48,500 $48,501 - $52,000 $52,501 - $80,500 > $80,500
Head of Household ≤ $36,375 $36,376 - $39,375 $39,376 - $60,375 > $60,375
All Other Filers ≤ $24,250 $24,251 - $26,250 $26,251 - $40,250 > $40,250
SEP Contribution Limits
Tax Year  
2026 The lesser of 25% of the first $360,000 of compensation or $72,000
Elective Deferral Limits
Tax Year Basic Deferral Limit Catch-Up Deferral (Based on Age) Total Deferral Limit (Based on Age)
2026 $24,500 (50-59) $8,000 (50-59) $32,500
(60-63) $11,250 (60-63) $35,750
(64+) $8,000 (64+) $32,500
SIMPLE Deferral Limits
Tax Year Basic Deferral Limit Catch-Up Deferral (Based on Age) Total Deferral Limit (Based on Age)
2026 $17,000* (50-59) $4,000 (50-59) $21,000
(60-63) $5,250 (60-63) $22,250
(64+) $4,000 (64+) $21,000
*Additional deferral amount (up to $18,100 total) might be available for certain plans

For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library or on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or you can call us at 1-800-552-9408. 

Mike Schiller
Michael Schiller
Manager, Specialized Consulting, Tax Advantaged Accounts
With nearly 30 years of experience, Mike has worked closely with hundreds of financial organizations to help them create, implement, and maintain their tax-advantaged accounts program.

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