New Retirement Plan Limits Announced

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

IRS: 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living
- https://www.irs.gov/pub/irs-drop/n-25-67.pdfRelated column excerpt:
  - “The details were part of Notice 2025-67. If you are age 50 or older, the maximum amount is higher due to catch-up contributions of $8,000 (an increase of $500 from 2025’s limits). That brings up your limit to $32,500 in 2026 if you are 50 or older. The limit applies to 401(k)s, 403(b)s, 457s or TSP plans -- provided the plan allows for catch-up contributions.”
IRS: Modified adjusted gross income
- https://www.irs.gov/credits-deductions/modified-adjusted-gross-income
  - Related column excerpt:
    - “If your IRA is a traditional one (tax-deferred), you might be able to deduct your contributions, although that deduction can be reduced or phased out if you or your spouse are covered by a retirement plan at work. It depends on your filing status and income, which is based on your MAGI (see the IRS webpage ‘Modified adjusted gross income’ for more details).”
IRS: Retirement Savings Contributions Credit (Saver’s Credit)
- https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-credit-savers-credit
  - Related column excerpt:
    - “The income limit for those low- and moderate-income workers who might qualify for the Saver’s Credit (aka the Retirement Savings Contributions Credit) is $80,500 for married couples filing jointly (an increase of $1,500 from 2025) and $40,250 for single filers (up $750 from 2025). More information on the Saver’s Credit can be found at the IRS webpage ‘Retirement Savings Contributions Credit (Saver’s Credit).’”