Key Takeaways
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After releasing the inflation-adjusted income tax brackets in October, the IRS has issued Notice 2025-67, 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living. Both the tax brackets and the retirement plan limits are usually issued around the same time, but they have come a bit later this year as a result of the recent shutdown.
Limits are adjusted on a yearly basis for cost-of-living adjustments (excluding the individual retirement account (IRA) catch-up contribution limit which is set by statute and not adjusted for cost-of-living) but each year there are some changes to other items.
The 2026 limits are effective as of January 1, 2026 and reflect some favorable changes for retirement planning. Leaders of our Tax Practice have listed the limitations dating back to 2023 for comparison purposes.
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|
2026 |
2025 |
2024 |
|
401(k), 403(b) and 457 elective deferral limit |
$24,500 |
$23,500 |
$23,000 |
|
Catch-up contribution limit (age 50 and older) |
$8,000
|
$7,500 |
$7,500 |
|
Catch-up contribution limit (age 60, 61,62, or 63) |
$11,250 |
$11,250 |
n/a |
|
Defined contribution plan limit |
$72,000 |
$70,000 |
$69,000 |
|
Annual compensation limit |
$360,000 |
$350,000 |
$345,000 |
|
Definition of highly compensated employee |
$160,000 |
$160,000 |
$155,000 |
|
Key employee |
$235,000 |
$230,000 |
$225,000 |
|
Defined benefit plan limit |
$290,000 |
$280,000 |
$275,000 |
|
|
2026 |
2025 |
2024 |
|
IRA contribution limit |
$7,500 |
$7,000 |
7,000 |
|
IRA catch-up contributions (age 50 and up) |
$1,100 |
$1,000 |
$1,000 |
|
SIMPLE IRA and SIMPLE 401(K) salary deferral limit |
$17,000 |
$16,500 |
$16,000 |
|
SIMPLE IRA and SIMPLE 401(K) catch-up limit |
$4,000 |
$3,500 |
$3,000 |
|
SIMPLE IRA and SIMPLE 401(K) catch-up limit (age 60, 61, 62, or 63) |
$5,250 |
$5,250 |
n/a |
|
Qualified Retirement Contribution Income Thresholds |
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Filing status |
2026 |
2025 |
|
Married Filing Jointly |
$129,000-149,000 |
$126,000-146,000 |
|
All Other Taxpayers |
$81,000-$91,000 |
$79,000-89,000 |
|
Married Filing Separately |
$0-10,000 |
$0-10,000 |
|
Spouses Who Are Not Active Participants |
$242,000-252,000 |
$236,000-246,000 |
Plan for 2026-based limit increases
Business owners and individuals should plan for 2026 with these figures in mind to position themselves for success. Fill out the form on this page to get in touch with our tax professionals to discuss tax planning and opportunities for tax savings.
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Author
MATTHEW MUNN
Partner, UHY LLP Managing Director, UHY Advisors
Matt Munn has over 30 years of experience in public accounting and is an active member of the Tax Practice and leader of the Retirement Plan and Employee Benefits Services Group. He’s also a leading member of the firm’s National Professional Employer Organizations Practice, National Staffing Practice and National Transaction Services Practice.