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The IRS has officially released the 2026 Cost-of-Living Adjustment (COLA) limits, and there are some important updates for retirement savers. For 2026, the maximum employee contribution to a 401(k) plan will increase to $24,500, up from $23,500 in 2025.
In addition, the IRS has published the full set of COLA adjustments for pension plans and other retirement-related limits in Notice 2025-67.
We’ve pulled everything together for you in an easy-to-view format.
| Employer Plan Limits | 2026 | 2025 | 2024 |
|---|---|---|---|
| Elective Deferral Limit (401(k), 403(b), 457(b) and SARSEP) | $24,500 | 23,500 | $23,000 |
| Age 50 Catch-Up Contribution Limit | $8,000 | $7,500 | $7,500 |
| Roth Catch-Up Threshold (NOTE: Reflects FICA wages paid in 2025) | $150,000 | N/A | N/A |
| Ages 60-63 Catch-Up Limit | $11,250 | $11,250 | N/A |
| Annual Defined Benefit Limit | $290,000 | $280,000 | $275,000 |
| Annual Defined Contribution Limit | $72,000 | $70,000 | $69,000 |
| Annual Compensation Limit | $360,000 | $350,000 | $345,000 |
| Highly Compensated Employee Dollar Threshold | $160,000 | $160,000 | $155,000 |
| SIMPLE Standard Contribution Limit | $17,000 | $16,500 | $16,000 |
| SIMPLE Small Employer Special Contribution Limit | $18,100 (1) | $17,600 (1) | $17,600 |
| SIMPLE Standard Age-50 Catch-Up Contribution Limit | $4,000 | $3,500 | $3,500 |
| SIMPLE Small Employer Special Age-50 Catch-Up Contribution Limit | $3,850 (2) | $3,850 (2) | 2 $3,850 |
| SIMPLE Age 60-63 Catch-Up Contribution Limit | $5,250 | $5,250 | N/A |
| SEP Coverage Minimum Comp. | $800 | $750 | $750 |
| SEP Compensation Limit | $360,000 | $350,000 | $345,000 |
| Top-Heavy Key Employee Comp | $235,000 | $230,000 | $220,000 |
| Social Security Taxable Wage Base | $184,500 | $176,100 | $168,600 |
| ESOP maximum amount subject to a 5-year distribution period | $1,455,000 | $1,415,000 | $1,380,000 |
| ESOP maximum amount for lengthening of the 5-year period | $290,000 | $280,000 | $275,000 |
Source: IRS Notice 2025-67
(1) For SIMPLE plans with 25 or fewer employees and SIMPLE plans with 26-100 participants if 4% match or 3% nonelective employer contribution provided
(2) For SIMPLE plans with 25 or fewer employees and SIMPLE plans with 26-100 participants if 4% match or 3% nonelective employer contribution provided
Click here to download a copy of the PDF version.