The IRS announced Cost of Living Adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2026 in Notice 2025-67.
Contribution and benefit increases are intended to allow participant contributions and benefits to keep up with the “cost of living” from year to year. Here are the highlights from the 2026 limits:
- The salary deferral limit for 401(k), 403(b), and 457 plans in 2026 has increased to $24,500, up from $23,500 for 2025.
- The catch-up contribution limit for individuals aged 60 to 63 remains at $11,250.
- The catch-up contribution limit for all other individuals aged 50 or older has increased to $8,000, up from $7,500.
- The limit on annual contributions to an IRA has increased to $7,500 up from $7,000.
- The catch-up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act (SECURE 2.0) to include an annual cost of living adjustment. It has increased to $1,100, up from $1,000 for 2025.
- The limitation regarding SIMPLE retirement accounts is increased from $16,500 to $17,000.
- The catch-up contribution limit for individuals aged 60 to 63 in a SIMPLE IRA plan also holds steady at $5,250 for 2026.
- The catch-up contribution limit for all other individuals aged 50 or older has increased to $4,000 up from $3,500.
- The limitation for defined contribution plans is increased in 2026 from $70,000 to $72,000.
- The limitation on the annual benefit under a defined benefit plan is increased from $280,000 to $290,000.
- The annual compensation limit for retirement plan purposes is increased from $350,000 to $360,000.
- The dollar limitation used to define a “key employee” for top-heavy testing and contribution requirements is increased from $230,000 to $235,000.
- The dollar amount for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased from $1,415,000 to $1,455,000, while the dollar amount used to determine the lengthening of the 5-year distribution period is increased from $280,000 to $290,000.
- The limitation used in the definition of “highly compensated employee” remains at $160,000.
- The compensation amount used for simplified employee pension (SEP) eligibility is increased from $750 to $800.
The following chart details 2026 retirement plan dollar limitation cost-of-living adjustments:
| Annual Plan Limits | 2026 | 2025 | 2024 |
|---|---|---|---|
| Contribution and Benefit Limits | |||
| Elective Deferral Limit | $24,500 | $23,500 | $23,000 |
| Catch-Up Contributions | $8,000 | $7,500 | $7,500 |
| Catch-Up Limit (age 60-63) | $11,250 | $11,250 | – |
| Annual Contribution Limit | $72,000 | $70,000 | $69,000 |
| Annual Benefit Limit | $290,000 | $280,000 | $275,000 |
| Compensation Limits | |||
| Maximum Plan Compensation | $360,000 | $350,000 | $345,000 |
| Income Subject to Social Security | $184,500 | $176,100 | $168,000 |
| Key EE Compensation Threshold | $235,000 | $230,000 | $220,000 |
| Highly Compensated EE Threshold | $160,000 | $160,000 | $155,000 |
| IRA Limits | |||
| SIMPLE Plan Elective Deferrals | $17,000 | $16,500 | $16,000 |
| SIMPLE Catch-Up Contributions | $4,000 | $3,500 | $3,500 |
| SIMPLE Catch-Up Limit (age 60-63) | $5,250 | $5,250 | – |
| Individual Retirement Account (IRA) | $7,500 | $7,000 | $7,000 |
| IRA Catch-Up Contribution | $1,100 | $1,000 | $1,000 |
Our Annual Limits chart is always available on our website HERE.