The IRS has released the cost-of-living adjustments that provide the dollar limitations for retirement plans in 2026. The following chart highlights some of the key limits. For more details, please check out IRS notice 2025-67 or contact your Retirement Plan Administration Consultant.
| For Plan Years Beginning In | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
| Taxable Wage Base | $184,500 | $176,100 | $168,600 | $160,200 | $147,000 | $142,800 |
| Medicare Taxable Wage Base | No Limit | |||||
| Defined Benefit Limit | $290,000 | $280,000 | $275,000 | $265,000 | $245,000 | $230,000 |
| Compensation Limit | $360,000 | $350,000 | $345,000 | $330,000 | $305,000 | $290,000 |
| SEP Coverage | $800 | $750 | $750 | $750 | $650 | $650 |
| Key Employee | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 |
| Officer Compensation Exceeding | $235,000 | $230,000 | $220,000 | $215,000 | $200,000 | $185,000 |
| More Than 1% Owner Compensation Exceeding | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 |
| More Than 5% Owner | – | |||||
| Highly Compensated Employees (HCE) | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 |
| Compensation Exceeding | $160,000 | $160,000 | $155,000 | $150,000 | $135,000 | $130,000 |
| Top Paid Group and Compensation Exceeding | $160,000 | $160,000 | $155,000 | $150,000 | $135,000 | $130,000 |
| A more than 5% Owner | N/A | |||||
| Highly Paid Individuals (HPI) | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 |
| FICA Wages Exceeding** | $150,000 | $150,000 | – | |||
| For Plan Years Ending In | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 |
| Defined Contribution Limit | $72,000 | $70,000 | $69,000 | $66,000 | $61,000 | $58,000 |
| For Calendar Year | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 |
| 401(k) Deferral Limit | $24,500 | $23,500 | $23,000 | $22,500 | $20,500 | $19,500 |
| 401(k) “Catch-Up” Contribution* | $8,000 | $7,500 | $7,500 | $7,500 | $6,500 | $6,500 |
| 401(k) “Catch-Up” Limit for Ages 60–63 | $11,250 | $11,250 | n/a | |||
| SIMPLE Deferral Limit | $17,000 | $16,500 | $16,000 | $15,500 | $14,000 | $13,500 |
| SIMPLE “Catch-Up” Contribution | $4,000 | $3,500 | $3,500 | $3,500 | $3,000 | $3,000 |
| ESOP Threshold Balance for lengthening the 5-year installment period | $1,455,000 | $1,415,000 | – | |||
| Amount for lengthening the 5-year ESOP installment period | $290,000 | $280,000 | – | |||
* Applies to Participants who have their 50th birthday (or older) during the calendar year.
**Under Secure 2.0, participants whose prior-year FICA wages exceed the threshold must have all catch-up contributions treated as Roth contributions. HPI status is determined separately from Highly Compensated Employee (HCE) status.
