IRS Announces Retirement Plan Limits for 2026
With the reopening of the government, the Internal Revenue Service (“IRS”) announced the new contribution and benefit limits for 2026. All benefit limits will increase, with the exception of Super Catch-Up contributions. Furthermore, the IRS made a last-minute change to the Catch-Up FICA Wage threshold retroactively increasing it from $145,000 to $150,000. Plan Sponsors must use this limitation to determine which Highly Paid Individuals (“HPI”) must fund their Catch-Up contributions as Roth rather than pre-tax.
It is important that you ensure your payroll system is updated to reflect these new limits starting January 1, 2026. If you have any questions, please feel free to contact our office.
| Contribution/Benefit Limits | 2026 | 2025 |
| Elective Deferrals [401(k), 403(b) & 457 plans] | $24,500 | $23,500 |
| Standard Catch-Up Contribution (Age 50 and older) | $8,000 | $7,500 |
| Super Catch-Up Contribution (Age 60 – 63) | $11,250 | $11,250 |
| HPI Compensation Threshold* | $150,000 | N/A |
| Annual Contribution Limit | $72,000 | $70,000 |
| Highly Compensated Threshold | $160,000 | $160,000 |
| Annual Compensation Limit | $360,000 | $350,000 |
| DB Plan Annual Benefit Limit | $290,000 | $280,000 |
| Key Employee Compensation | $235,000 | $230,000 |
| Simple Employee Deferral | $17,000 | $16,500 |
| Simple Catch-Up Contribution | $4,000 | $3,500 |
As published by the Internal Revenue Service. *Participants eligible for Catch-Up contribution who had FICA wages in excess of $150,000 in 2025 must fund their 2026 Catch-Up as a Roth Contributions.
For full details on the pension plan limitations for 2026 click here.
To download a PDF copy click here.