With the end of the government shutdown, the IRS has announced the 2026 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines, with increases in some of the limits.
The annual limit for elective deferrals to 401(k) plans and 403(b) plans will increase from $23,500 for 2025 to $24,500 for 2026. The annual limit for regular catch-up contributions for individuals who will be age 50 or older during 2026 will increase from $7,500 for 2025 to $8,000 for 2026, while the new increased catch-up limit for participants ages 60-63 by year end (if available under the plan) remains unchanged at $11,250 for 2026. The recent IRS announcement also confirmed that the new 2026 requirement for catch-up contributions to be made as Roth contributions will apply to employees whose FICA wages exceeded $150,000 in 2025 (increased from the $145,000 threshold in the SECURE 2.0 legislation).
The Social Security Administration also announced that the Social Security wage base will increase from $176,100 for 2025 to $184,500 for 2026.
Listed below are key limits applicable for 2026 and 2025.
| Limit |
2025 |
2024 |
|
Annual Compensation Limit (or 401(a)(17) limit)
|
$360,000
|
$350,000
|
|
Elective Deferrals (401(k) plans, 403(b) plans)
|
$24,500 |
$23,500 |
|
Catch-up Contributions (plans other than SIMPLE plans)
- Regular Catch-up Contribution Limit
- SECURE 2.0 Increased Catch-up Contribution Limit (for participants who attain age 60, 61, 62 or 63 in 2025)
|
$8,000
$11,250
|
$7,500
$11,250
|
|
FICA Wage Threshold for Roth Catch-Up Contribution Requirement (based on 2025 wages)
|
|
$150,000 |
N/A |
|
Defined Contribution Plan 415 Limit
|
$72,000 |
$70,000 |
|
Defined Benefit Plan 415 Limit
|
$290,000 |
$280,000 |
|
Highly Compensated Employee
|
$160,000 |
$160,000 |
|
SIMPLE Plan Contribution Limit
|
$17,000 |
$16,500 |
|
SIMPLE Plan Catch-up Contributions
- Regular Catch-up Contribution Limit
- SECURE 2.0 Increased Catch-up Contribution Limit (for participants who attain age 60, 61, 62 or 63 in 2025)
|
$4,000
$5,250
|
$3,500
$5,250
|
|
Social Security Wage Base
|
$184,500 |
$176,100
|
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