The IRS has released the 2026 cost-of-living adjustments (COLAs) for retirement plan contribution limits, including 401(k), IRA, and related plans. These updates are outlined in Notice 2025-67: 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living.
The new limits, effective January 1, 2026, reflect inflation adjustments and provide expanded opportunities for tax-advantaged retirement savings. The announcement followed shortly after the IRS published the inflation-adjusted income tax brackets in October, which were delayed this year due to the recent government shutdown.
2026 401(k), 403(b), and 457 Plan Limits
The elective deferral limit for 401(k), 403(b), and governmental 457(b) plans has increased to $24,500, up from $23,500 in 2025.
Workers age 50 and older can contribute an additional $8,000 in 2026, up from $7,500 in 2025.
For those age 60–63, a special catch-up provision continues, allowing $11,250 in additional contributions.
Key 2026 plan limits
|
Plan Feature |
2026 |
2025 |
2024 |
|
401(k), 403(b), and 457 elective deferral limit |
$24,500 |
$23,500 |
$23,000 |
|
Catch-up contribution (age 50+) |
$8,000 |
$7,500 |
$7,500 |
|
Catch-up (age 60–63) |
$11,250 |
$11,250 |
n/a |
|
Defined contribution plan total limit |
$72,000 |
$70,000 |
$69,000 |
|
Annual compensation limit |
$360,000 |
$350,000 |
$345,000 |
|
Highly compensated employee threshold |
$160,000 |
$160,000 |
$155,000 |
|
Key employee threshold |
$235,000 |
$230,000 |
$225,000 |
|
Defined benefit plan limit |
$290,000 |
$280,000 |
$275,000 |
2026 IRA and SIMPLE IRA contribution limits
The IRA contribution limit has increased to $7,500 for 2026, up from $7,000 in 2025.
The IRA catch-up contribution for individuals age 50 and over is $1,100, up from $1,000.
SIMPLE IRA and SIMPLE 401(k) plans also saw meaningful increases to help small business owners and employees save more effectively:
|
Plan Feature |
2026 |
2025 |
2024 |
|
IRA contribution limit |
$7,500 |
$7,000 |
$7,000 |
|
IRA catch-up (age 50+) |
$1,100 |
$1,000 |
$1,000 |
|
SIMPLE IRA / SIMPLE 401(k) salary deferral |
$17,000 |
$16,500 |
$16,000 |
|
SIMPLE IRA / SIMPLE 401(k) catch-up (50+) |
$4,000 |
$3,500 |
$3,000 |
|
SIMPLE IRA / SIMPLE 401(k) catch-up (age 60–63) |
$5,250 |
$5,250 |
n/a |
Qualified retirement contribution income thresholds
These income thresholds determine eligibility for deductible IRA contributions and other retirement-related tax benefits.
|
Filing Status |
2026 |
2025 |
|
Married Filing Jointly |
$129,000–$149,000 |
$126,000–$146,000 |
|
All Other Taxpayers |
$81,000–$91,000 |
$79,000–$89,000 |
|
Married Filing Separately |
$0–$10,000 |
$0–$10,000 |
|
Spouses Who Are Not Active Participants |
$242,000–$252,000 |
$236,000–$246,000 |
How these 2026 changes affect retirement planning
The 2026 increases give both individuals and business owners new opportunities to maximize retirement savings and reduce taxable income.
Higher contribution limits mean more room for tax-deferred or tax-free growth, depending on plan type.
It’s a good time to:
- Review your 401(k) or IRA contribution strategy
- Adjust salary deferrals to reach new thresholds
- Evaluate SIMPLE IRA or defined benefit plan participation for small businesses
- Coordinate with your tax professional to ensure full advantage of 2026 COLA adjustments
FAQ: 2026 Retirement Plan Changes
Q: What is the 2026 401(k) contribution limit?
A: $24,500, with an additional $8,000 catch-up for individuals age 50 or older.
Q: How much can I contribute to an IRA in 2026?
A: Up to $7,500, or $8,600 total if you’re age 50 or older.
Q: When do the new limits take effect?
A: January 1, 2026.
Q: Why did the IRS release these limits later this year?
A: The release was delayed due to the recent government shutdown, which pushed back several routine IRS announcements.
Plan ahead for 2026
Both individuals and business owners should begin planning for 2026 now to ensure contributions are optimized and tax benefits are fully captured.
UHY’s tax professionals can help you evaluate your savings strategy, model the potential impact of higher limits, and identify new opportunities for tax-efficient growth.
Contact our tax team to discuss your 2026 planning strategy and discover how these updates could benefit your financial future.
Have a Question?
Complete this form to ask our professionals a question.
By submitting this form, you agree to be contacted by UHY.