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

Plan sponsors must update payroll and plan systems before January 1, 2026 to implement the new limits.

Overview

  • Notice 2025-67, released November 13, establishes 2026 cost-of-living adjustments for tax-qualified retirement plans.
  • The 401(k) and 403(b) elective deferral limit rises to $24,500, with catch-up contributions set at $8,000 for most workers and $11,250 for those turning ages 60–63 in 2026.
  • The Roth catch-up requirement will be determined using a $150,000 wage lookback for 2025, up from $145,000, shaping who must make catch-ups on an after-tax basis.
  • The compensation cap that can be considered under qualified plans increases to $360,000 for 2026, while the highly compensated employee threshold stays at $160,000.
  • Other notable changes include the defined contribution limit increasing to $72,000, the defined benefit limit to $290,000, and the Social Security taxable wage base to $184,500.