Inflation-adjusted retirement figures for 2026 have been announced by the IRS in Notice 2025-67. Key adjustments contained in the notice include, but are not limited to:
- The IRA contribution limit and catch-up contribution limit is increased from $7,000 to $7,500 and from $1,000 to $1,100, respectively. Also included in the Notice are the increased income phase-out ranges;
- The SIMPLE contribution limit for businesses with 25 or more employees is increased from $16,500 to $17,000, while the catch-up contribution amount for most employees age 50 and older is increased from $3,500 to $4,000 ($5,250 for employees aged 60, 61, 62, or 63). For businesses with fewer than 26 employees, the contribution limit is increased from $17,600 to $18,100 and the general catch-up contribution limit remains at $3,850;
- The annual contribution limit for IRC §§401(k), 403(b), 457 governmental plans, and the federal government’s Thrift Savings Plan is increased from $23,500 to $24,500, and the catch-up contribution limit for most employees 50 and older is increased from $7,500 to $8,000. However, employees aged 60, 61, 62, and 63 can make a catch-up contribution of up to $11,250; and
- The qualified charitable distribution limit is increased from $108,000 to $111,000.
Sign up for Spidell’s 2025/2026 Federal and California Tax Update webinar and get information on the most important issues facing your practice. Click here and register today.
