Contribution Limit Increases - 2026

In the last few weeks, the IRS has announced contribution increases for retirement plans for 2026.  Following are highlights of the adjustments.

401(k) Plans

Standard Deferral:  $24,500

Age 50 Catch-Up:  $8000

Age 60 – 63 Super Catch Up:  $11,250

*For those who earned $150,000 or more in 2025, catch up contributions are required to go to the Roth portion of your 401(k) plan.

IRA Contributions

Maximum contributions are $7500

Age 50 Catch Up contributions are $1100

*Roth contributions begin phasing out for single filers with AGI of $153,000, MFJ filers of $242,000.

*Deductible IRA contributions begin phasing out for single filers with AGI of $81,000, MFJ filers of $129,000.  These limits assume access to a workplace retirement plan.

Contribution, Benefit, and Compensation Limits

The maximum contribution to a Defined Contribution plan is $72,000.  Most common application of this limit is in the realm of a discretionary profit-sharing contribution to a 401(k) plan.  And this is a “per person” maximum.

The maximum annual income benefit from a Defined Benefit plan is now $290,000.

The annual compensation limit which can be taken into account when calculating retirement plan benefits is $360,000.

There is more.  Much more.  These limits cover what 95% of us experience on a regular basis.  For those of you who are clients, we have already communicated with you about actions to take to capitalize on these changes.

As always, we appreciate the opportunity to serve.

And until we see you again, wishing you only the best.