On Nov. 13, 2025, the Internal Revenue Service issued Notice 2025-67, providing the cost-of-living dollar limits for retirement plans.
| Limit | 2026 | 2025 |
|---|---|---|
| Defined benefit plan The lesser of the maximum dollar limitation for annual benefits under defined benefit plans under Internal Revenue Code (IRC) Section 415(b)(1)(A) or 100% of the participant’s average compensation for their high three years. |
$290,000 | $280,000 |
| Defined Contribution plan 415 dollar limit The lesser of the dollar limitation for annual additions under defined contribution plans under IRC Section 415(c)(1)(A) or 100% of compensation. |
$72,000 | $70,000 |
| 401(k)/403(b)/existing SARSEP elective deferral limit All elective deferrals (including designated Roth contributions) in a tax year made by a participant to 401(k), 403(b) tax deferred annuity, simplified employee pension and SIMPLE retirement plans are aggregated under IRC Section 402(g). |
$24,500 | $23,500 |
| 457 deferral limit The lesser of the limitation on vested contributions to 457 plans under IRC Section 457(e)(15) or 100% of includible compensation. |
$24,500 | $23,500 |
| 403(b) limit, including 15 years of service catch-up The maximum available 402(g) elective deferral limit plus the Special Catch-up election for employees participating in a 403(b) tax deferred annuity who have had at least 15 years of service with an educational organization, hospital, home health agency, health and welfare service agency, church or convention or association of churches.Note: The additional 403(b) special catch-up of up to $3,000 per year cannot exceed cumulatively $15,000 over the lifetime of the 403(b) participant. |
$27,500 | $26,500 |
| Special 457 Catch-up limit The Special Catch-up election for employees participating in an eligible 457 deferred compensation plan who have elected the special catch-up available in the three years prior to the year of normal retirement age. The annual additional amount available under a Special 457 Catch-up for an eligible participant is the lesser of (1) twice the current deferral limit, or (2) the sum of the current deferral limit plus the underutilized amount from prior years.Note: The participant in a governmental 457(b) plan may make catch-up contributions in a year equal to the greater of (1) the amount permitted under the Age 50+ Catch-up, or (2) the amount permitted under the Special 457 Catch-up. |
$49,000 | $47,000 |
| Age 50+ Catch-up limits (401(k), 403(b) and governmental 457(b) Plans) The Special Catch-up available under IRC Section 414(v) for individuals at least 50 years old to make eligible pre-tax (and/or designated Roth) contributions to 401(k), 403(b) and governmental 457 plans.**Important note with respect to participants whose FICA wages in the prior year paid by the employer sponsoring a 401(k), 403(b) or governmental 457(b) plan exceeded the dollar amount under the “Roth catch-up Threshold”: The Roth catch-up wage threshold for the prior year, which is used to determine whether an individual’s catch-up contributions to 401(k), 403(b), or governmental 457(b) plan, must be designated as Roth contributions in 2026. |
$8,000
$150,000 |
$7,500
$145,000 |
| Increased catch-up limit for participants between ages 60-63 (401(k), 403(b) and governmental 457(b) Plans) The increased catch-up available under IRC Section 414(v) for individuals at least 60 years old and not more than 63 years to make eligible pre-tax (and/or designated Roth) contributions to 401(k), 403(b) and governmental 457 plans. |
$11,250 | $11,250 |
| IRA annual contribution limit Total annual contributions may be made by an individual, aggregating all traditional and Roth IRAs they own. Note: Federal individual income tax filing status and adjusted gross income determine the deductibility of annual contributions to a traditional IRA and eligibility to contribute to a Roth IRA. |
$7,500 | $7,000 |
| Age 50+ Catch-up limit (IRAs) The special catch-up available under IRC Section 219(b) for individuals at least 50 years old. |
$1,100 | $1,000 |
| Definition of key employee The compensation threshold used for determining key employees under IRC Section 416(i)(1)(A)(i). |
$235,000 | $230,000 |
| Definition of highly compensated employees The compensation threshold used for determining highly compensated employees under IRC Section 414(q)(1)(B). |
$160,000 | $160,000 |
| Compensation limit The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 401(a)(17).The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 401(a)(17) (certain governmental plan participants who first became participants in that governmental plan before the 1996 plan year). |
$360,000
$535,000 |
$350,000
$520,000 |
| Dollar limit for exception to the IRS premature distribution penalty tax for domestic abuse victim distributions The annual dollar amount used for determining the aggregate amount available for a domestic abuse victim distribution from 401(a) and 401(k) defined contribution plans, 403(b) plans, governmental 457(b) plans and traditional IRAs, other than defined contribution plans subject to spousal consent. The amount available cannot exceed the lesser of that year’s dollar amount or 50% of the participant’s vested account. |
$10,500 | $10,300 |
| Adjusted gross income limit for Saver’s Credit The highest adjusted gross income (based on federal income tax filing status) taken into account for eligibility for the Saver’s Credit under IRC Section 25B. |
$80,500 (joint)
$40,250 (single) $60,375 (head of household) |
$79,000 (joint)
$39,500 (single) $59,250 (head of household) |
| Deferral limit for SIMPLE retirement accounts Annual contribution limit for employee deferrals to a SIMPLE retirement plan described in IRC Section 408(p)(2) or 401(k)(11). |
$17,000 | $16,500 |
| Age 50+ Catch-up limit for SIMPLE retirement accounts The Special Catch-up is available for individuals who are at least 50 years old and make eligible pre-tax contributions to a SIMPLE plan described in IRC Section 408(p)(2) or 401(k)(11). |
$4,000 | $3,500 |
| Increased catch-up limit for participants ages 60-63 (SIMPLE retirement accounts) The increased catch-up available under IRC Section 414(v) for individuals at least 60 years old and not more than 63 years old to make eligible pre-tax (and/or designated Roth in the case of a SIMPLE 401(k) plan) contributions to a SIMPLE plan described in IRC Section 408(p)(2) or 401(k)(11). |
$5,250 | $5,250 |
| Compensation for SEPs Compensation taken into account to determine eligibility for simplified employee pensions (SEPs). |
$800 | $750 |
On Oct. 24, 2025, the Social Security Administration released its cost-of-living information for 2026:
Taxable Wage Base – Maximum amount of earnings subject to payroll tax.
2026 – $184,500
2025 – $176,100