Rising Limits, Rising Opportunities: What 2026 Means for Your TSP and IRA Contributions

The 2026 contribution limit to the Thrift Savings Plan is increasing to $24,500 per year, an increase of 4.3% over the 2025 annual limit ($23,500), according to an announcement from the Internal Revenue Service.

The catch-up contribution limit for federal employees aged 50 and above is increasing to $8,000 in 2026, up from $7,500 in 2025. This extra contribution allows them to boost their retirement savings by making a total of $32,500 to the TSP each year.

Under a change made in the SECURE 2.0 Act of 2022, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in the TSP. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.

2026 IRA Contribution Limits

The 2026 IRA annual contribution limit is increasing to $7,500, up from $7,000 in 2025. It last increased in 2024 when it went from $6,500 in 2023 to $7,000.

The IRA catch-up contribution limit for individuals aged 50 and above was amended under the SECURE 2.0 Act of 2022 to include an annual cost-of-living adjustment. This adjustment is increased to $1,100, up from $1,000 for 2025.

2026 Roth IRA Income Phase-Out Ranges

The income phase-out range for taxpayers contributing to a Roth IRA has been adjusted as follows:

• For single filers, the range has increased from between $150,000 and $165,000 in 2025 to between $153,000 and $168,000.
• For heads of household, the range has increased from between $150,000 and $165,000 to between $153,000 and $168,000.
• For married couples filing jointly, the range has increased from between $236,000 and $246,000 to between $242,000 and $252,000. Notably, the phase-out range for a married individual filing a separate return who contributes to a Roth IRA remains unchanged and continues to be between $0 and $10,000, without an annual cost-of-living adjustment.

2026 Traditional IRA Income Phase-Out Ranges

According to the IRS, taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.)

• For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 in 2025.
• For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

Past Annual TSP Contribution Limits

The table below shows the annual TSP limits going back to 2013. Since that time, the annual contribution limit has increased 40%. About half of that growth has been in the last four years (2022-2026). This reflects the impact of rising inflation and cost-of-living adjustments.