IRS Benefit Plan Limits for 2026

01/21/2026 - Article presented by Verdi Wealth Management









On November 13, 2025, the IRS released Notice 2025-67, announcing updated cost-of-living adjustments that will impact retirement plan contribution limits for 2026. These updates affect a variety of retirement plans and accounts. Below are a few key highlights of these changes. For more information please click here.  You may also want to check with your employer’s benefits department if you have questions specific to your retirement plan at work.

Key Takeaways — 2026 IRS Benefit Plan Updates

  • 401(k) Contribution Limits
    • The standard employee contribution limit for 401(k), 403(b), and most 457 plans increases to $24,500 in 2026, up from $23,500 in 2025.
  • 401(k) Catch-Up Contributions
    • If you’re age 50 or older, you can contribute an extra $8,000 in catch-up contributions (up from $7,500).
    • For participants ages 60–63, a higher “super catch-up” amount of $11,250 still applies.
  • Roth 401(k) Catch-Up Rule
    • Under the SECURE 2.0 Act, beginning in 2026 catch-up contributions must be made on a Roth (after-tax) basis if the participant’s prior-year wages exceed a threshold that has increased to $150,000.
  • Roth IRA Contribution Limits
    • The Roth IRA contribution limit for 2026 remains tied to the regular IRA contribution limit of $7,500, and eligibility is based on higher income phase-out ranges (e.g., $153,000–$168,000 for singles; $242,000–$252,000 for married filing jointly). The Backdoor Roth IRA loophole remains open, allowing high-income earners to fund a Roth IRA through a non-deductible traditional IRA contribution followed by a conversion.
  • Roth IRA Catch-Up Contributions
    • If you’re age 50 or older, the additional IRA catch-up limit is $1,100 in 2026, up from $1,000 in 2025.

If you have any questions on this or anything else, please give us a call.

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