2026 Retirement Plan Limits Increase Under IRS Notice 2025-67
2026 Retirement Plan Contribution Limits: What Changed Under IRS Notice 2025-67
IRS Notice 2025-67 increases key retirement plan limits for 2026 across the most common employer and individual plans. The adjustments affect 401(k) and 403(b) plans, governmental 457(b) plans, SIMPLE and SEP arrangements, traditional and Roth IRAs, the saver’s credit, and qualified charitable distributions (QCDs). The expanded limits allow taxpayers to save more for retirement while broadening eligibility for deductions, Roth contributions, and credits.
Key Tax Impacts for 2026
- The annual employee elective deferral limit for 401(k), 403(b), and most governmental 457(b) plans increases from $23,500 to $24,500.
- The governmental 457(b) plan deferral limit increases to $24,500.
- The standard age 50 catch-up contribution limit for 401(k), 403(b), and governmental 457(b) plans increases to $8,000.
- The enhanced “age 60–63” catch-up contribution for 401(k), 403(b), and governmental 457(b) plans remains $11,250.
- The limit on annual additions (total employer and employee contributions, excluding age 50+ catch-up contributions) to defined contribution plans under IRC §415(c)(1)(A) increases to $72,000. This same $72,000 cap applies to maximum SEP employer contributions.
- SIMPLE IRA employee elective deferrals increase to $17,000. For applicable SIMPLE plans under SECURE 2.0, an enhanced deferral limit of $18,100 applies.
- The SIMPLE IRA age 50 catch-up contribution increases to $4,000, and the enhanced catch-up for ages 60–63 in applicable SIMPLE plans remains $5,250.
- The minimum compensation threshold for SEP IRA eligibility increases from $750 to $800.
- The combined annual contribution limit for traditional and Roth IRAs increases to $7,500, with the age 50 catch-up contribution increasing to $1,100.
- Traditional IRA deduction phase-out ranges increase for all filing statuses, including $129,000 to $149,000 for married filing jointly where the contributor is covered by a workplace plan.
- Roth IRA contribution phase-out ranges increase to $242,000 to $252,000 for married filing jointly and $153,000 to $168,000 for single filers and heads of household.
- Saver’s credit income limits increase to approximately $80,500 for married filing jointly, $60,375 for heads of household, and $40,250 for single and married filing separately filers.
- The annual limit for qualified charitable distributions (QCDs) increases to $111,000. The one-time split-interest QCD election limit increases to $55,000.
- For 2026, catch-up contributions to 401(k), 403(b), and governmental 457(b) plans must be designated as Roth contributions when the participant’s prior-year FICA wages exceed $150,000.
These 2026 adjustments create meaningful planning opportunities for workers, business owners, high earners, and retirees. Updating contribution elections, payroll settings, and retirement plan strategies is essential to fully capture the benefits of the higher limits. Coordinating these changes with the new Roth catch-up requirements and expanded income thresholds for IRA deductions, Roth contributions, and the saver’s credit helps ensure an optimized tax position.
See current federal rates and annual adjustments on the Economic Dashboard .
For reference, the IRS announcement detailing the 2026 retirement plan limit increases is available at: IRS News Release — 2026 Retirement Plan Limits .
