November 14, 2025

IRS Increases 2026 Retirement Plan Contribution Limits

The IRS has increased the annual employee deferral limit for 401(k), 403(b), and 457(b) plans to $24,500 for 2026 (up from $23,500 in 2025). The age 50+ catch-up limit rises to $8,000, allowing employees to defer up to $32,500 in total. For those ages 60–63, the special “super catch-up” remains at $11,250.

These higher limits reflect inflation and allow participants to save more toward retirement.

Don’t forget! Beginning in 2026, individuals earning over $150,000 in 2025 wages must make their 401(k), 403(b), or governmental 457(b) catch-up contributions as Roth (after tax) only.

View the updated IRS annual cost of living adjustment chart here.