The Internal Revenue Service (IRS) released Notice 2025-67 (the “Notice”), which announced the dollar limitations for benefits and contributions under tax-qualified retirement plans for 2026, as adjusted for cost-of-living under Internal Revenue Code Section 415.
Separately, the Social Security Administration also announced the taxable wage base for 2026.
Generally speaking, the amounts increased from 2025 to 2026, with the super catch-up contribution limit and the definition of highly compensated employee being the exceptions.
The chart below shows the limitations effective January 1, 2026, as compared to those for 2025:
| Plan Limitations |
Code Section |
2026 |
2025 |
| Elective Deferrals for 401(k), 403(b) and 457 plans |
402(g)(1) |
$24,500 |
$23,500 |
| Catch-up Contribution Limit (for age 50 and older) |
414(v)(2)(B)(i) |
$8,000 |
$7,500 |
| Super Catch-Up Contribution Limit (for ages 60, 61, 62 & 63) |
414(v)(2)(E)(i) |
$11,250 |
$11,250 |
| Required Roth Catch-Up Contribution Wage Threshold* |
414(v)(7)(A) |
$150,000 |
N/A |
| Annual Compensation Limit |
401(a)(17) |
$360,000 |
$350,000 |
| Defined Contribution Plan Limit |
415(c)(1)(A) |
$72,000 |
$70,000 |
| Defined Benefit Plan Limit |
415(b)(1)(A) |
$290,000 |
$280,000 |
| Definition of Highly Compensated Employee |
414(q)(1)(B) |
$160,000 |
$160,000 |
| Key Employee |
416(i)(1)(A)(i) |
$235,000 |
$230,000 |
| Social Security Wage Base |
|
$184,500 |
$176,100 |
*One noteworthy addition is that the Roth Catch-Up Requirement goes into effect on January 1, 2026. For more information please see the Calfee First Alert “IRS Catches Up on Roth Catch-Up Regulations: Action Needed Now.” It is important to note that the Notice increased the prior compensation limit of $145,000 per SECURE 2.0 Act to $150,000 (meaning, anyone who had $150,000+ of FICA wages in 2025 will be subject to catch-up contributions in the form of Roth contributions in 2026).
If you sponsor a tax-qualified retirement plan that is not a calendar-year plan, care must be taken in applying these limits, because some limits are calendar-year limits (for example, the limit on elective deferrals), while others are plan-year limits (for example, the annual compensation limit).
If you have any questions about the 2026 limitations or any other matter related to your retirement plan(s), please contact any member of our Employee Benefits and Executive Compensation practice group.
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