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IRS Sets 2026 Retirement Plan Limits, Lifts 401(k) Deferrals to $24,500

The update raises key caps for savers and adds a $150,000 wage test that triggers Roth-only catch‑ups for older high earners.

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Overview

  • Employee elective deferral limits for 401(k) and 403(b) plans increase to $24,500 for 2026, up from $23,500 in 2025.
  • The standard catch-up contribution for those age 50 or older rises to $8,000 for 2026.
  • The special catch-up for participants ages 60–63 remains unchanged at $11,250 for 2026 if offered by the plan.
  • Catch-up contributions must be made as Roth for employees whose 2025 FICA wages exceed $150,000, reflecting an increase from the $145,000 level in SECURE 2.0.
  • The Social Security taxable wage base climbs to $184,500 for 2026, up from $176,100 in 2025.