The 2026 IRS contribution and benefit limits for 401(k), 403(b), 457, SIMPLE, and IRA plans — what changed from 2025, and what franchise plan sponsors and their highly compensated employees need to know.
| Limit | 2025 | 2026 |
|---|---|---|
| Workplace Plans · 401(k) / 403(b) / 457(b) | ||
| Elective deferral limit IRC §402(g) | $23,500 | $24,500 |
| Catch-up contribution, age 50+ | $7,500 | $8,000 |
| Super catch-up, ages 60–63 SECURE 2.0; replaces the age-50 catch-up | $11,250 | $11,250 |
| Total deferral, age 50+ deferral + catch-up | $31,000 | $32,500 |
| Total deferral, ages 60–63 | $34,750 | $35,750 |
| Annual additions limit employee + employer · IRC §415(c) | $70,000 | $72,000 |
| Annual compensation limit IRC §401(a)(17) | $350,000 | $360,000 |
| Highly compensated employee (HCE) threshold prior-year compensation | $160,000 | $160,000 |
| Key employee — top-heavy IRC §416(i) | $230,000 | $235,000 |
| Defined benefit annual limit IRC §415(b) | $280,000 | $290,000 |
| Social Security taxable wage base | $176,100 | $184,500 |
| SIMPLE Plans | ||
| SIMPLE elective deferral | $16,500 | $17,000 |
| SIMPLE catch-up, age 50+ | $3,500 | $4,000 |
| SIMPLE super catch-up, ages 60–63 | $5,250 | $5,250 |
| IRAs | ||
| IRA contribution limit | $7,000 | $7,500 |
| IRA catch-up, age 50+ | $1,000 | $1,100 |
| Roth IRA phase-out — single / head of household | $150,000–$165,000 | $153,000–$168,000 |
| Roth IRA phase-out — married filing jointly | $236,000–$246,000 | $242,000–$252,000 |
| Traditional IRA deduction phase-out — single, covered by a plan | $79,000–$89,000 | $81,000–$91,000 |
| Qualified charitable distribution (QCD) limit | $108,000 | $111,000 |
Source: IRS Notice 2025-67 and IR-2025-111, announced November 13, 2025. The HCE threshold of $160,000 governs the 2026 plan year and is based on 2025 compensation. Figures apply to the 2026 tax/plan year.
