IRS Announces New 2026 Contribution Limits

The Internal Revenue Service has released updated retirement contribution limits for 2026. While the adjustments are relatively modest, there are several important changes that investors—especially those planning for retirement in Fresno, Clovis, and the surrounding Central Valley—should be aware of.

Individual Retirement Accounts (IRAs)

IRA contribution limits will increase by $500, bringing the 2026 limit to $7,500.
For individuals age 50 and older, the catch-up contribution will rise by $100, increasing the total allowable contribution to $8,600.

Roth IRAs

Roth IRA income phase-out ranges are also adjusting:

• Single filers and heads of household: $153,000–$168,000

• Married filing jointly: $242,000–$252,000

• Married filing separately: $0–$10,000 (unchanged)

These updates may affect contribution eligibility for many households throughout Fresno and Clovis, particularly those whose income has grown alongside the region's expanding small-business and professional sectors.

Workplace Retirement Accounts

Employees contributing to workplace retirement plans—such as 401(k), 403(b), and 457 plans—will see a $1,000 increase in their 2026 limits:

• Standard contribution limit: $24,500

• Catch-up for age 50+: $8,000, for a total of $32,500

• Enhanced catch-up for ages 60–63: $11,250, for a total of $35,750

These higher limits may benefit many Central Valley professionals preparing to transition from employer plans into retirement, including those evaluating upcoming 401(k) rollover options as part of their long-term strategy.

SIMPLE Accounts

SIMPLE IRA plans will also see a $500 increase in 2026, raising the limit to $17,000.
Certain plans defined under Secure Act 2.0 qualify for an increased limit of $18,100.

These changes may be especially relevant for small-business owners in Fresno and Clovis using SIMPLE plans to support their employees’ retirement savings.

Additional IRS Adjustments

The IRS also introduced other updates for 2026, including:

• An increase in the annual gift tax exclusion to $19,000 per person

• An increase to the estate tax exclusion threshold

These shifts may influence long-term planning strategies for families in the Central Valley focused on wealth transfer, estate planning, and multi-generational financial organization.

A Note on Planning

These updates are provided for informational purposes. Individuals should consult with a qualified tax professional before making any adjustments based on the new 2026 IRS limits. Financial strategies—whether involving IRAs, Roth IRAs, workplace plans, SIMPLE accounts, or potential 401(k) rollover considerations—should be tailored to personal circumstances and retirement timelines.

Legacy Finance will continue monitoring federal updates to keep Fresno and Clovis investors informed as 2026 approaches.