2026 retirement plan limits now set
November 14, 2025
IRS Notice 2025-67 provides official 2026 limits for qualified defined benefit and defined contributions retirement plans and Internal Revenue Code (IRC) Section 403(b) plans. The 2026 limits reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2024 to the third quarter of 2025.
| IRC retirement plan limit | 2026 | 2025 |
|---|---|---|
| 401(k), 403(b) and eligible 457 plan elective deferrals (and designated Roth contributions) | $24,500 | $23,500 |
| 414(v)(2)(B)(i) catch-up contributions for employees ages >=501 | ||
| For employees ages 60‒63 | 11,250 | 11,250 |
| For all other employees | 8,000 | 7,500 |
| 414(v)(7)(A) FICA wage threshold for Roth catch-up mandate2 | 150,000 | 145,000 |
| 415(b) defined benefit plan annuity | 290,000 | 280,000 |
| 415(c) defined contribution plan annual addition | 72,000 | 70,000 |
| 401(a)(17) and 408(k)(3)(C) compensation | 360,000 | 350,000 |
| 414(q)(1)(B) highly compensated employee (HCE) and 414(q)(1)(C) top-paid group3 | 160,000 | 160,000 |
| 416(i)(1)(A)(i) officer compensation for top-heavy plan key employee | 235,000 | 230,000 |
1. Different limits apply to SIMPLE plans.
2. Employees are subject to the Roth catch-up mandate in 2026 if their 2025 FICA wages exceeded $150,000.
3. The HCE limit shown for a year is applied to compensation for that plan year to determine if an employee is an HCE for the following plan year, e.g., an employee with 2026 plan year compensation greater than $160,000 may be an HCE for the 2027 plan year.
Related resources
Non-Mercer resources
- Notice 2025-67 (IRS, Nov. 13, 2025)
Mercer Law & Policy resources
- Summary of 2025 benefit-related cost-of-living adjustments (Jan. 24, 2025)
- 2026 quick benefit facts (Nov. 14, 2025)
- Quick benefit facts and COLA resources for benefit plans (2021–2025)