With Notice 2025-67, the IRS has released the inflation-adjusted retirement plan contribution limits for 2026. While the increases are more modest than in recent years, many key limits will still rise, giving some taxpayers additional room to build long-term savings.

KEY 2026 RETIREMENT PLAN LIMITS
Elective Deferrals
• 401(k), 403(b), and 457 plans: $24,500 (up from $23,500)

Defined Benefit & Defined Contribution Plans
• Defined benefit plan annual limit: $290,000 (up from $280,000)
• Defined contribution plan annual limit: $72,000 (up from $70,000)

SIMPLE Plans
• SIMPLE contribution limit: $17,000 (up from $16,500)
• SIMPLE catch-up for age 50+: $4,000 (up from $3,500)
• SIMPLE catch-up for ages 60–63: $5,250 (unchanged)

Traditional and Roth IRAs
• IRA contribution limit: $7,500 (up from $7,000)
• IRA catch-up for age 50+: $1,100 (up from $1,000)

Catch-Up Contributions for Workplace Plans
• Catch-up for age 50+ (401(k), 403(b), 457): $8,000 (up from $7,500)
• Catch-up for ages 60–63: $11,250 (unchanged)

Other Limits
• SEP minimum compensation: $800 (up from $750)
• Qualified plan/SEP compensation cap: $360,000 (up from $350,000)
• Highly compensated employee threshold: $160,000 (unchanged)

*Starting in 2026, the SECURE 2.0 Act requires the catch-up contributions of higher-income taxpayers to be treated as post-tax Roth contributions. Generally, for 2026, the requirement will apply to taxpayers who earned more than $150,000 during the prior year. However, new final regulations state that the deadline for plan amendments to implement this change is December 31, 2026. So there might not be any adverse consequences for plans that continue to allow non-Roth account catch-up contributions for higher-income taxpayers in 2026.

Your modified adjusted gross income (MAGI) may reduce or even eliminate your ability to take advantage of IRAs. Fortunately, IRA-related MAGI phaseout range limits will all increase for 2026:

Traditional IRAs. MAGI phaseout ranges apply to the deductibility of contributions if a taxpayer (or his or her spouse) participates in an employer-sponsored retirement plan:

• For married taxpayers filing jointly, the phaseout range is specific to each spouse based on whether he or she is a participant in an employer-sponsored plan: For a spouse who participates, the 2026 phaseout range limits will increase by $3,000, to $129,000–$149,000. For a spouse who doesn’t participate, the 2026 phaseout range limits will increase by $6,000, to $242,000–$252,000.

• For single and head-of-household taxpayers participating in an employer-sponsored plan, the 2026 phaseout range limits will increase by $2,000, to $81,000–$91,000.

Taxpayers with MAGIs in the applicable range can deduct a partial contribution; those with MAGIs exceeding the applicable range can’t deduct any IRA contribution.

But a taxpayer whose deduction is reduced or eliminated can make nondeductible traditional IRA contributions. The $7,500 contribution limit for 2026 (plus $1,100 catch-up, if applicable, and reduced by any Roth IRA contributions) still applies.

Nondeductible traditional IRA contributions may also be beneficial if your MAGI is too high for you to contribute (or fully contribute) to a Roth IRA.

Roth IRAs. Whether you participate in an employer-sponsored plan doesn’t affect your ability to contribute to a Roth IRA, but MAGI limits may reduce or eliminate your ability to contribute:

• For married taxpayers filing jointly, the 2026 phaseout range limits will increase by $6,000, to $242,000–$252,000.

• For single and head-of-household taxpayers, the 2026 phaseout range limits will increase by $3,000, to $153,000–$168,000.

You can make a partial contribution if your MAGI falls within the applicable range, but no contribution if it exceeds the top of the range.

(Note: Married taxpayers filing separately are subject to much lower phaseout ranges for traditional and Roth IRAs.)

When reviewing your retirement plan, be sure to consider these 2026 contribution limits. We can help you review your retirement plan and make any necessary revisions.