2026 Retirement Plan Contribution Limits: What You Need to Know

Let’s talk about the new 2026 retirement plan contribution limits and what they mean for your financial planning. Every year, the IRS updates these numbers, and this year’s changes are worth a closer look—especially if you’re maximizing your savings or helping others do the same.

Key 2026 Limits at a Glance

• 401(k), 403(b), and 457 Elective Deferrals:
  The new limit is $24,500. That’s up $1,000 from last year. If you’re contributing to one of these plans, this is your new ceiling for regular contributions.


• Annual Defined Contribution Limit:
  Now $72,000. This is the total you and your employer can put into your plan for the year.


• Annual Compensation Limit:
  Raised to $360,000. This affects how much of your income can be considered for plan contributions.


• Catch-Up Contributions:
  If you’re 50 or older, you can add extra. For most plans, the catch-up limit is $8,000. But if you’re age 60, 61, 62, or 63, you get a higher catch-up limit of $11,250.
  Heads up: Starting in 2026, if you earn more than $150,000, catch-up contributions must be Roth (after-tax), not pretax. If you earn $150,000 or less, you can still make pretax catch-up contributions.


• Highly Compensated Employees:
  The threshold is $160,000.


• Key Employees:
  The limit is $235,000.


• Social Security Wage Base:
  Increased to $184,500.


• Defined Benefit Annual Benefit Maximum:
  Now $290,000.


• SIMPLE IRA Employee Deferrals:
  Standard limit is $17,000. If your employer has 25 or fewer employees, you may qualify for a higher limit of $18,100 thanks to SECURE Act 2.0.


• SIMPLE IRA Catch-Up Deferrals:
  For most, it’s $3,850. For certain plans, it’s $4,000. If you’re age 60–63, the catch-up limit jumps to $5,250.


• Traditional/Roth IRA Contribution Limit:
  $7,500 for 2026.


• Traditional/Roth IRA Catch-Up Contribution Limit:
  $1,100.

What’s New for 2026?

• SECURE Act 2.0 Changes:
• Higher catch-up limits for ages 60–63.
• Roth catch-up required for high earners (over $150,000).
• SIMPLE IRA limits increased for small employers.

Why Does This Matter?

Maximizing your contributions is one of the best ways to build wealth for retirement. These new limits mean you can save more, take advantage of employer matches, and potentially reduce your taxable income. If you’re approaching retirement, the catch-up contributions are a powerful tool—especially with the new higher limits for those in their early 60s.

If you’re a business owner, these changes could impact your plan design and employee benefits. If you’re an employee, knowing your limits helps you plan smarter.

Next Steps

• Review your current contributions.
• Let’s talk about how these changes affect your strategy.

If you have questions about how these limits fit into your plan, let’s connect. I’m here to help you make the most of every opportunity.

This is meant to be educational in nature. Prinze Foundational Planning does not provide tax or legal advice.