On November 13, 2025, the IRS announced in Notice 2025-67 cost-of-living adjustments to the tax-qualified retirement plan dollar limits for 2026. Most of the applicable dollar limits currently effective for 2025 will increase moderately compared with the prior year. Below is a summary of the limits that are generally relevant for most retirement plans.
Effective January 1, 2026:
- The elective deferral limit for 401(k), 403(b), and eligible 457(b) plans is increased from $23,500 to $24,500.
- The catch-up contribution limit for those aged 50 or older is increased from $7,500 to $8,000.
- The higher catch-up contribution limit added by SECURE 2.0 for individuals aged 60 to 63 will remain at $11,250.
- The Roth catch-up wage threshold for 2025 to be applied in 2026 is increased from $145,000 to $150,000.
- The dollar limit on the annual benefit under a defined benefit plan is increased from $280,000 to $290,000.
- The dollar limit on annual allocations under a defined contribution plan is increased from $70,000 to $72,000.
- The annual compensation limit is increased from $350,000 to $360,000.
- The annual compensation limit for eligible participants in certain governmental plans that, as of July 1, 1993, allowed for the cost-of-living adjustments to the annual compensation limit in effect at that time is increased from $520,000 to $535,000.
- The dollar threshold for “highly compensated employee” status used in performing various nondiscrimination tests remain at $160,000.
- The dollar threshold for “key employee” status for officers used in performing the “top-heavy” test is increased from $230,000 to $235,000.
The Social Security Administration recently announced the Social Security Wage Base for 2026 will increase from $176,100 to $184,500.
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