2026 Retirement Plan Limits

The IRS has officially released the 2026 retirement plan limits - and they're opening the door to increased savings potential. We're ready to walk you through every change and what it means for your plan and your people.

401(k), 403(b), and Governmental 457 Plan Limits

• Contribution Limit: Increased to $24,500 (up from $23,500 in 2025).
• Catch-Up Contributions for Age 50-59, 64+: Increased to $8,000 (up from $7,500 in 2025). Maximum deferral for those 50+ is $32,500.
• Special Catch-Up for Age 60-63: Unchanged at $11,250 for eligible participants aged 60, 61, 62 and 63. Maximum deferral for those age 60-63 is $35,750.

SIMPLE IRA Limits (for those companies with under 25 employees)

• Contribution Limit: Increased to $18,100 (up from $17,600 in 2025).
• Catch-Up Contributions for Age 50-59, 64+: Unchanged at $3,850.
• Special Catch-Up for Age 60-63: Limit of $5,250 for eligible participants aged 60, 61, 62 and 63 regardless of the size of the employer.

IRA & Roth Limits

• Annual Contribution Limit: Increased to $7,500 (up from $7,000 in 2025).
• Catch-Up Contributions for Age 50+: Increased to $1,100 (up from $1,000 in 2025).

Important information requiring the mandatory Roth rule for high wage earners. Starting in 2026, a provision from the SECURE 2.0 Act mandates that catch-up contributions made by employees who earned more than $150,000 in FICA wages in the prior calendar year must be designated as Roth contributions. Previously this FICA limit was set at $145,000 and with the recent announcement was increased to $150,000.

You can find a downloadable resource document with all the 2026 limits at the close of this post.

For additional information or specific questions, you can contact the Allied Retirement Team at (406) 839-2037.