The IRS is boosting retirement plan contribution limits in 2026, allowing Americans to put more money in their tax-preferred 401(k) and individual retirement accounts.

The tax agency, which announced the new contribution thresholds on Thursday, adjusts those account limits annually to account for inflation. Without these increases, people saving for retirement would have a harder time sheltering income from taxes and inflation.

"The new 2026 retirement plan limits give people more room to save, which is especially helpful as retirement gets longer and more expensive," Lisa Featherngill, national director of strategic wealth and business advisory at Comerica Wealth Management, said in an email. "Higher limits for 401(k), 457 and similar plans — along with bigger catch-up contributions —

See Full Page