IRS Updates Retirement Savings Limits and Tax Credits to Encourage Contributions

The IRS has introduced new retirement savings rules for 2026, increasing contribution limits for 401(k)s, IRAs, and other plans, with higher catch-up options for older workers and new Roth catch-up requirements for high earners. Separately, the Saver's Credit offers eligible low- and middle-income taxpayers a federal tax credit of up to 50% on retirement contributions under 2025 income rules, though many remain unaware of this benefit. These measures aim to encourage greater retirement savings amid economic uncertainties.