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Higher contribution limits in 2026

A new year brings a bigger opportunity to save for retirement.

Key takeaways

  • 2026 contribution limits are higher across retirement accounts.
  • Even small increases in savings can potentially compound over time.
  • IRAs offer flexible options for those without workplace plans.
  • Automating contributions can help you stay consistent.

The IRS has announced higher retirement account contribution limits for 2026, giving savers a chance to put away more for the future. While the numbers themselves are important, the real story is what they represent: a renewed opportunity to build long-term financial security through consistent saving and the potential power of compounding.

Whether you're just starting out or already well into your career, 2026 could be the year to take your savings strategy to the next level.

Why saving even a little more can matter a lot

It’s easy to feel overwhelmed by retirement planning, especially when the goal seems far off. But Fidelity’s research shows that small, consistent increases in your savings rate can make a big difference over time. In fact, bumping up your contributions by just 1%—whether to a 401(k), 403(b), or IRA—can significantly enhance your retirement lifestyle.

That’s because of the potential magic of compounding. When you invest money, it may hopefully earn returns. Then those returns potentially earn their own returns. Over time, this snowball effect could turn modest contributions into substantial savings.

IRAs and workplace plans like 401(k)s

401(k)s and other workplace plans like 403(b)s can help you save for retirement—typically with relatively high contribution limits, pre-tax or Roth contributions, potential employer matches, and tax-deferred growth potential.

If you don’t have access to a workplace retirement plan, IRAs offer a valuable alternative. For 2026, the contribution limits have increased, allowing eligible individuals to save even more. Traditional and Roth IRAs each come with their own distinct tax advantages, and you can contribute to either—or both—up to the combined annual limit if you’re eligible.

Traditional IRAs may offer tax-deductible contributions, depending on your income and access to a workplace plan. Roth IRAs, on the other hand, allow for potentially tax-free withdrawals in retirement if certain conditions are met.1 Choosing between them often comes down to whether you expect your tax rate to be higher now or later.

Read Fidelity Viewpoints: Traditional or Roth account? 2 tips to help you choose

Get the numbers

Ready to dig into the details? These updated Fidelity resources break down the new limits and eligibility rules for 2026:

  • IRA contribution limits
    Get the details on the maximum IRA contributions for 2025 and 2026, plus, learn who qualifies for the full deduction on traditional IRA contributions. Your modified adjusted gross income (MAGI) and your workplace benefits (and your spouse’s) affect whether you can deduct contributions from your taxable income. Reminder: Contributions to Roth and traditional IRAs for 2025 can be made until the federal tax-filing deadline—not including extensions.
  • Roth IRA income limits for 2025 and 2026
    The IRS restricts who can contribute to a Roth IRA based on MAGI. This article explains Roth IRA income limits for 2025 and 2026 and how to calculate your MAGI to see if you qualify.
  • 401(k) contribution limits for 2024, 2025, and 2026
    Learn how much you can contribute to your 401(k) in 2026—and how catch-up contributions work if you’re 50 or older.
  • 403(b) contribution limits for 2024, 2025, and 2026
    Like 401(k)s, 403(b) plans offer generous contribution limits. This article outlines the latest numbers and eligibility rules.

Make the most of higher limits

With contribution limits rising, now is a great time to revisit your savings strategy. Consider:

If you’re already saving, consider challenging yourself to do more. Whether it’s an extra $10 a week or a few hundred dollars a month, every bit counts. As Fidelity Vice President Ann Dowd, CFP® puts it, “Small steps now can turn into big strides later.”

The road to retirement doesn’t have to be steep. With higher contribution limits and a commitment to consistent saving, 2026 could be your most impactful year yet.

Is an IRA right for you?

We can help you decide whether you might want a traditional, Roth, or rollover IRA.

Compare IRAs

More to explore

This information is intended to be educational and is not tailored to the investment needs of any specific investor.

 1. A distribution from a Roth IRA is tax-free and penalty-free, provided that the 5-year aging requirement has been satisfied and at least one of the following conditions is met: you reach age 59½, become disabled, make a qualified first-time home purchase ($10,000 lifetime limit), or die. Required minimum distributions do not apply to the original account owner, although heirs will be subject to them.

Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

Past performance is no guarantee of future results.

The CERTIFIED FINANCIAL PLANNER® certification, which is also referred to as a CFP® certification, is offered by the Certified Financial Planner Board of Standards Inc. ("CFP Board"). To obtain the CFP® certification, candidates must pass the comprehensive CFP® Certification examination, pass the CFP® Board's fitness standards for candidates and registrants, agree to abide by the CFP Board's Code of Ethics and Professional Responsibility, and have at least 3 years of qualifying work experience, among other requirements. The CFP Board owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER® in the U.S.

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