November 14, 2025

IRS Announces Increased Retirement Plan Limits for 2026

Employee Benefits

2 min read

IRS Announces Increased Retirement Plan Limits for 2026

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

The Risk Strategies Financial & Wealth Services team is here to help. Contact them directly here.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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