The IRS recently released employee benefit plan limits for 2026.
PLAN LIMITATIONS |
2024 | 2025 | 2026 |
| Annual Compensation Limit | $345,000 | $350,000 | $360,000 |
| Defined Contribution Maximum Annual Contribution | $69,000 | $70,000 | $72,000 |
| Annual §401(k) Employee Deferral Limit | $23,000 | $23,500 | $24,500 |
| Age 50 Catch-up Contributions to §401(k) Plan | $7,500 | $7,500 | $8,000 |
| Age 60, 61, 62, or 63 Catch-up Contributions to §401(k) Plan | N/A | $11,250 | $11,250 |
| Highly Compensated Employee Threshold | $155,000 | $160,000 | $160,000 |
| Highly Compensated Determination for Mandatory Roth Catch-up | This amount was originally expected to be $145,000; however, the IRS unexpectedly announced an increase in this amount to $150,000 | $150,000 | |
| Income subject to Social Security Wage Base | $168,600 | $176,100 | $184,500 |
| Traditional or Roth IRA Limit | $7,000 | $7,000 | $7,500 |
| Age 50 IRA Catch-up Limit | $1,000 | $1,000 | $1,100 |
Please share this information with your payroll personnel so they are aware of these limits.
