2026 Retirement Plan Limits
The IRS has released the 2026 Cost-of-Living Adjustments (COLA) for retirement plans. Several contribution limits have increased for 2026, offering employees expanded opportunities to save for retirement and healthcare expenses.
Please review the updated limits below and consider whether you would like to adjust your contribution elections for the upcoming year.
2026 Contribution Limits
(Amounts in bold increased from 2025)
Retirement Plan Limits (401(k), 403(b), and governmental 457(b)
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COLA Limit
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2026
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2025
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|---|---|---|
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402(g) Elective Salary Deferral Limit
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Maximum pretax and Roth contributions you may defer.
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$24,500
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$23,500
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“Age 50” Catch-Up Contribution Limit¹²³
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Additional contributions allowed for individuals turning age 50 by year-end.
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$8,000
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$7,500
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“Age 60–63” Catch-Up Limit¹²³
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Enhanced SECURE Act catch-up for individuals reaching ages 60–63 during the year.
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$11,250
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$11,250
|
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415 Annual Addition Limit
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Total annual additions to your account (employee + employer + forfeitures).
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$72,000
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$70,000
|
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HCE Compensation Limit
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Compensation level used to determine Highly Compensated Employee (HCE) status.
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$160,000
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$160,000
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Compensation Limit⁴
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Maximum compensation considered for plan contributions.
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$360,000
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$350,000
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Key Reminders for 2026
Roth-Only Catch-Up Contributions for Certain Employees
Beginning January 1, 2026, employees whose 2025 FICA wages exceed $150,000 must make all catch-up contributions on a Roth (after-tax) basis.
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Applies to FICA wages under IRC §3121(a) (Form W-2 Box 3).
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Employers may alternatively use Form W-2 Box 5 wages for 2026.
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Employees with wages ≤ $150,000 are exempt (indexed for inflation).
Applies to 401(k), 403(b), and governmental 457(b) plans
This requirement does not apply to non-governmental 457(b) plans.
SECURE Act 2.0 Enhanced Catch-Up for Ages 60–63
The enhanced catch-up limit replaces the standard Age 50 catch-up for those who qualify.
High earners (>$150,000 prior-year wages) must make these catch-up contributions on a Roth basis.
High earners (>$150,000 prior-year wages) must make these catch-up contributions on a Roth basis.
Governmental Plan Special Rule
The compensation limit for certain grandfathered governmental plans increases from $520,000 to $535,000.
What You Should Do Next
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Review your current deferral elections for 2026 and adjust if desired.
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If you will be age 50 or older in 2026, consider whether you want to take advantage of the expanded catch-up limits.
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If your wages exceeded $150,000 in 2025, be aware your catch-up contributions will automatically be Roth in 2026.
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If you participate in a High Deductible Health Plan (HDHP), consider updating your HSA contributions.