United States 
Canada (EN) 
México 
France 
Deutschland 
United Kingdom 
Quick Hits
- The elective deferral limit for 401(k) and 403(b) plans will increase to $24,500 for 2026, and the catch-up contribution limit will increase to $8,000 for most employees but will remain at $11,250 for employees who achieve ages sixty to sixty-three during 2026.
- The limitation on compensation that can be taken into account under tax-qualified retirement plans will increase to $360,000 for 2026.
- The threshold for determining highly compensated employees will remain at $160,000.
- In a surprising development, the threshold for determining highly paid individuals for purposes of the Roth catch-up contribution requirement will increase from $145,000 to $150,000 for the 2025 lookback year.
The 2026 adjustments were not out of line with those made for the 2025 calendar year. The increases shown below are effective January 1, 2026.
| Internal Revenue Code (IRC) or Regulation Section | 2026 | 2025 |
| Annual compensation limit: IRC §§ 401(a)(17) / 404(l) | $360,000 | $350,000 |
| Elective deferral limit: IRC §§ 402(g)(1) and 457(e)(15) | $4,500 | $23,500 |
| Catch-up contribution limit: IRC § 414(v)(2)(B)(i) For employees ages 60-63: For other employees: | $11,250 $8,000 | $11,250 $7,500 |
| Roth catch-up wage threshold: IRC § 414(v)(7)(A) | TBD | $150,000 |
| Defined benefit plan limit: IRC § 415(b)(1)(A) | $290,000 | $280,000 |
| Defined contribution plan limit: IRC § 415(c)(1)(A) | $72,000 | $70,000 |
| Highly compensated employee threshold: IRC § 414(q)(1)(B) | $160,000 | $160,000 |
| Employee stock ownership plan (ESOP) limits: IRC § 409(o)(1)(C) | $1,455,000 $290,000 | $1,415,000 $280,000 |
| Key employee dollar limit in top-heavy plan: IRC § 416(i)(1)(A)(i) | $235,000 | $230,000 |
| SIMPLE maximum contribution limit: IRC § 408(p)(2)(E) | $17,000 | $16,500 |
| SIMPLE catch-up contribution limit: IRC § 414(v)(2)(B)(ii) For employees ages 60-63: For all other employees: | $5,250 $4,000 | $5,250 $3,500 |
| Simplified employee pension (SEP) minimum compensation: IRC § 408(k)(2)(C) | $800 | $750 |
| SEP maximum compensation: IRC § 408(k)(3)(C) | $360,000 | $350,000 |
| Control employee: § 1.61-21(f)(5)(i) | $145,000 | $140,000 |
| Control employee: § 1.61-21(f)(5)(iii) | $290,000 | $285,000 |
| Social Security taxable wage base | $184,500 | $176,100 |
The IRS makes cost-of-living adjustments annually in response to inflation. Each limit is rounded to a whole number, generally the nearest $500 or $1,000, as prescribed by law.
Ogletree Deakins’ Employee Benefits and Executive Compensation Practice Group and Employee Tax Practice Group will continue to monitor developments and provide updates on the Employee Benefits and Executive Compensation and Employment Tax blogs as new information becomes available.
Katrina M. Clingerman is a shareholder in the Indianapolis office of Ogletree Deakins.
David S. Rosner is a shareholder in the Washington office of Ogletree Deakins.
Tracy L. Mounts is a paralegal in the Indianapolis office of Ogletree Deakins.
Follow and Subscribe
LinkedIn | Instagram | Webinars | Podcasts
