2026 Retirement Plan Contribution & Benefit Limits
The IRS has announced new contribution and benefit limits for 2026, covering 401(k)s, IRAs, 403(b)s, 457s, SIMPLE plans, and more. Here’s a breakdown of what’s changing next year.
| Retirement Item | 2025 Limit | 2026 Limit | Notes |
|---|---|---|---|
| 401(k), 403(b), most 457, and Thrift Savings Plan employee contribution | $23,500 | $24,500 | Base employee contribution limit. |
| Catch‑up contribution (age 50+) | $7,500 | $8,000 | Applies to 401(k), 403(b), 457, and TSP participants. |
| Special catch‑up (ages 60–63) | $11,250 | $11,250 | Indexed separately from standard catch‑up. |
| IRA contribution limit | $7,000 | $7,500 | Applies to both traditional and Roth IRAs. |
| IRA catch‑up (age 50+) | $1,000 | $1,100 | Indexed for inflation per SECURE 2.0. |
| SIMPLE IRA/SIMPLE 401(k) contribution | $16,500 | $17,000 | Increased by $500. |
| SIMPLE catch‑up (age 50+) | $3,500 | $4,000 | Higher catch‑up limits apply in certain SIMPLEs. |
| Annual defined contribution (DC) plan benefit (§415(c)) | $70,000 | $72,000 | Maximum annual contribution. |
| Annual defined benefit (DB) plan benefit (§415(b)) | $280,000 | $290,000 | Maximum annual pension benefit. |
| Annual compensation limit (§401(a)(17)) | $350,000 | $360,000 | Used for plan contribution calculations. |
| Highly compensated employee (§414(q)) | $160,000 | $160,000 | No change for 2026. |
| Key employee (§416(i)) | $230,000 | $235,000 | Used for top‑heavy plan testing. |
| Roth catch‑up income threshold | $145,000 | $150,000 | Those earning over $150,000 in 2025 must make Roth catch‑ups in 2026. |
| Simplified Employee Pension (SEP) comp threshold | $750 | $800 | Minimum compensation for employer contribution eligibility. |
| Qualifying Longevity Annuity Contract (QLAC) premium limit | $210,000 | $210,000 | Unchanged for 2026. |
| Charitable IRA distribution limit | $108,000 | $111,000 | Deductible limit for qualified charitable distributions. |
| One‑time IRA split‑interest distribution | $54,000 | $55,000 | Limit increased for 2026. |
| Pension‑linked emergency savings (PLESA) | $2,500 | $2,600 | Applies to emergency savings within DC plans. |
| Domestic‑abuse‑related withdrawal limit | $10,300 | $10,500 | Applies to qualified early withdrawals. |
| ESOP 5‑year distribution balance cap | $1,415,000 | $1,455,000 | Used to determine plan distribution period. |
| ESOP balance for extending 5‑year period | $280,000 | $290,000 | Indexed in line with section 415 limits. |
Other Phase‑Out Ranges and Limitations
| Retirement Item | 2025 Limit | 2026 Limit | Notes |
|---|---|---|---|
| Traditional IRA deduction (single, covered by plan) | $79,000–$89,000 | $81,000–$91,000 | Phase‑out range increases slightly. |
| Traditional IRA deduction (married filing jointly, covered spouse) | $126,000–$146,000 | $129,000–$149,000 | Applies when contributing spouse participates in employer plan. |
| IRA deduction (noncovered spouse married to covered spouse) | $236,000–$246,000 | $242,000–$252,000 | Applies when only one spouse is covered by a workplace plan. |
| Roth IRA income phase‑out (single/head of household) | $150,000–$165,000 | $153,000–$168,000 | Eligible range for Roth contributions. |
| Roth IRA income phase‑out (married filing jointly) | $236,000–$246,000 | $242,000–$252,000 | Married couples’ eligibility range. |
| Roth IRA income phase‑out (married filing separately) | $0–$10,000 | $0–$10,000 | Unchanged due to statutory rules. |
| Saver’s Credit income limit – married filing jointly | $79,000 | $80,500 | Applies to low‑ and moderate‑income savers. |
| Saver’s Credit income limit – head of household | $59,250 | $60,375 | Increased for inflation. |
| Saver’s Credit income limit – single or married filing separately | $39,500 | $40,250 |
Key Takeaways
Most retirement plan contribution limits rise for 2026, reflecting cost-of-living adjustments.
The 401(k), IRA, and SIMPLE plan changes offer savers higher tax‑advantaged opportunities.
Those earning over $150,000 in 2025 must make catch-up contributions as Roth starting in 2026.
SECURE 2.0 continues to create distinctions for older workers, especially those ages 60–63.
Several thresholds related to plan compensation, deductions, and credit eligibility also saw moderate increases.
For full details, see IRS Notice 2025‑67 (PDF).