The IRS issued Notice 2025-67, which modifies the annual limits for retirement plans. These limits are updated annually for cost-of-living adjustments. The IRS also issued Rev. Proc. 2025-19 and 2025-32 to update certain additional inflation-adjusted items for 2026.
| 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| 401(k), 403(b) and 457 elective deferral limit | $24,500 | $23,500 | $23,000 | $22,500 |
| Catch-up contribution limit (age 50–59 and 64+) | $8,000 | $7,500 | $7,500 | $7,500 |
| Catch-up contribution limit (age 60–63) | $11,250 | $11,250 | – | – |
| Annual compensation limit | $360,000 | $350,000 | $345,000 | $330,000 |
| Defined contribution plan limit | $72,000 | $70,000 | $69,000 | $66,000 |
| Defined benefit plan limit | $290,000 | $280,000 | $275,000 | $265,000 |
| Definition of highly-compensated employee | $160,000 | $160,000 | $155,000 | $150,000 |
| Key employee | $235,000 | $230,000 | $220,000 | $215,000 |
| IRA contribution limit | $7,500 | $7,000 | $7,000 | $6,500 |
| IRA catch-up contributions (age 50+) | $1,100 | $1,000 | $1,000 | $1,000 |
| SIMPLE IRA and SIMPLE 401(k) salary deferral limit | $17,000 | $16,500 | $16,000 | $15,500 |
| SIMPLE IRA and SIMPLE 401(k) catch-up (age 50–59 and 64+) | $4,000 | $3,500 | $3,500 | $3,500 |
| SIMPLE IRA and SIMPLE 401(k) catch-up (age 60–63) | $5,250 | $5,250 | – | – |
The catch-up contribution limit may be increased again to $5,250 in the case of participants attaining age 60, 61, 62 and 63 during 2026.
| 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| Qualified Transportation Fringe (QTF) combined commuter highway vehicle and transit passes (monthly) | $340 | $325 | $315 | $300 |
| QTF qualified parking (monthly) | $340 | $325 | $315 | $300 |
| Health flexible spending account | $3,400 | $3,300 | $3,200 | $3,050 |
| Health savings account (self-only) | $4,400 | $4,300 | $4,150 | $3,850 |
| Health savings account (family) | $8,750 | $8,550 | $8,300 | $7,750 |
| Health savings account catch-up (age 55 and older) | $1,000 | $1,000 | $1,000 | $1,000 |
Refer to Rev. Proc. 2025-32 for a complete list of inflation-adjusted items for 2026.
The limits shown above become effective Jan. 1, 2026. Employers should review these changes and determine whether any updates to their plan administration or documentation are needed. Individual taxpayers should also consult with their tax advisers on how these changes may impact their qualified plan accounts. Any necessary action on behalf of employers to prepare for these limit changes, such as conversations with plan recordkeepers, third-party administrators or payroll vendors should be completed in the near term. Employers are also reminded that retirement plans that run on a fiscal year should be careful when applying these changes, as some limits are always calendar-year limits (e.g., the elective deferral limit), while other limits apply on a plan-year-beginning (e.g., the annual compensation limit) or ending (e.g., annual addition limit) basis.
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