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On November 13, 2025, the Internal Revenue Service (IRS) announced in Notice 2025-67 cost-of-living adjustments to the applicable dollar limits under qualified retirement plans for 2026.
The table below compares the applicable dollar limits for qualified retirement plans for 2026 and 2025.
Employers should work with their retirement plan recordkeepers and payroll providers to update these limits in applicable systems for January 1, 2026.
|
Qualified Retirement Plan Limits |
2026 |
2025 |
Change from 2025 |
|---|---|---|---|
|
Section 401(k), 403(b), and governmental 457 plans: Maximum elective deferral limit |
$24,500 |
$23,500 |
+$1,000 |
|
Section 401(k), 403(b), and governmental 457 plans: Catch-up contribution limit for individuals aged 50 or over* * For 2026, retirement plan participants aged 50 or over may contribute up to $32,500. |
$8,000 |
$7,500 |
+$500 |
|
Section 401(k), 403(b), and governmental 457 plans: Higher catch-up contribution limit applies for individuals who turn age 60, 61, 62, or 63 in 2026. For 2026, retirement plan participants who turn age 60, 61, 62, or 63 in 2026 may contribute up to $35,750. |
$11,250 |
$11,250 |
No change |
|
Section 414(v)(7)(A) Roth catch-up wage threshold to determine if an individual’s catch-up contributions must be designated as Roth contributions This provision of Secure 2.0 was delayed until January 1, 2026 |
$150,000 |
$145,000 |
+$5,000 |
|
Section 415(c)(1)(A) defined contribution plans annual additions limit |
$72,000 |
$70,000 |
+$2,000 |
|
Section 414(q)(1)(B) limit: “Highly compensated employee” |
$160,000 |
$160,000 |
No change |
|
Section 416(i)(A)(i) limit: “Key employee” in top-heavy plans |
$235,000 |
$230,000 |
+$5,000 |
|
Annual compensation limit (applicable to certain retirement plans) |
$360,000 |
$350,000 |
+$10,000 |