Retirement Planning Key Numbers
Certain retirement plan and IRA limits rose for 2026. These tables offer an overview of the changes.
|
Elective deferral limits |
2025 | 2026 |
|---|---|---|
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 (includes Roth contributions) | Lesser of $23,500 or 100% of compensation ($31,000 if age 50 or older; $34,750 if age 60 to 63) 2 | Lesser of $24,500 or 100% of compensation ($32,500 if age 50 or older; $35,750 if age 60 to 63) 2 |
| SIMPLE 401(k) plans and SIMPLE IRA plans 1 | Lesser of $16,500 or 100% of compensation ($20,000 if age 50 or older; $21,750 if age 60 to 63) | Lesser of $17,000 or 100% of compensation ($21,000 if age 50 or older; $22,250 if age 60 to 63) |
| SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect these higher limits) 1 | Lesser of $17,600 or 100% of compensation ($21,450 if age 50 or older; $22,850 if age 60 to 63) | Lesser of $18,100 or 100% of compensation ($21,950 if age 50 or older; $23,350 if age 60 to 63) |
| Starter 401(k) plans and safe-harbor 403(b) plans | Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) | Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,100 if age 50 or older) |
|
IRA contribution limits |
2025 | 2026 |
|---|---|---|
| Traditional and Roth IRAs | Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older) | Lesser of $7,500 or 100% of earned income ($8,600 if age 50 or older) |
|
Defined benefit plan annual benefit limits |
2025 | 2026 |
|---|---|---|
| Annual benefit limit per participant | Lesser of $280,000 or 100% of average compensation for highest three consecutive years | Lesser of $290,000 or 100% of average compensation for highest three consecutive years |
|
Defined contribution plan limits [qualified plans, 403(b) plans, and SEP plans] |
2025 | 2026 |
|---|---|---|
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) | Lesser of $70,000 or 100% (25% for SEP) of participant's compensation | Lesser of $72,000 or 100% (25% for SEP) of participant's compensation |
| Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals) | $2,500 | $2,600 |
| Retirement plan compensation limits | 2025 | 2026 |
|---|---|---|
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs) |
$350,000 |
$360,000 |
|
Compensation threshold used to determine a highly compensated employee |
$160,000 (when 2025 is the look-back year) |
$160,000 (when 2026 is the look-back year) |
|
Compensation threshold used to determine a key employee in a top-heavy plan |
$1 for more-than-5% owners $230,000 for officers $150,000 for more-than-1% owners |
$1 for more-than-5% owners $235,000 for officers $150,000 for more-than-1% owners |
|
Compensation threshold used to determine a qualifying employee under a SIMPLE plan |
$5,000 |
$5,000 |
|
Compensation threshold used to determine a qualifying employee under a SEP plan |
$750 |
$800 |
| Income threshold at which catch-up contributions must be designated as Roth contributions | N/A | $150,000 |
| Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers: 3 | 2025 | 2026 |
|---|---|---|
|
1. Covered by an employer-sponsored plan and filing as: |
|
|
|
Single/Head of household |
$79,000 - $89,000 |
$81,000 - $91,000 |
|
Married filing jointly |
$126,000 - $146,000 |
$129,000 - $149,000 |
|
2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan |
$236,000 - $246,000 |
$242,000 - $252,000 |
| Income phase-out range for determining ability to fund a Roth IRA for taxpayers filing as: 3 | 2025 | 2026 |
|---|---|---|
|
|
||
|
Single/Head of household |
$150,000 - $165,000 |
$153,000 - $168,000 |
|
Married filing jointly |
$236,000 - $246,000 |
$242,000 - $252,000 |
