Pension Plan Limitations for 2026 Provided by IRS

Highlights

Impacted Employers: All employers sponsoring 401(k), 403(b), and 457 pension plans.

Effective Date: Jan. 1, 2026

Summary: Pension Plan Limitations for 2026 have been released by the IRS. The 401(k)-contribution limit is increased to $24,500. Any individual making $150,000 or more in FICA wages in 2025 must make catch-up contributions in 2026 on a post-tax basis (Roth).

Next Steps: Update applicable plan documents and summary plan descriptions and communicate 2026 limits to plan participants.

Plan Maximum Contribution Limits

2025

2026

Section 401(k) Plan or SAR SEP

$23,500

$24,500

Catch-up contributions (if age 50 or older) *

$7,500

$8,000

Catch-up contributions (individuals who attain age 60,61,62 or 63 in 2026) *

$11,250

$11,250

Roth (after tax catch-up contributions) threshold

$145,000

$150,000

Section 403(b) Plan

$23,500

$24,500

Section 408(p)(2)(E) SIMPLE Plan Contributions

$16,500

$17,000

Section 457(e)(15) Limit

$23,500

$24,500

Section 415 Limit for:

Defined Contribution Plans

Defined Benefit Plans

$70,000

$280,000

$72,000

$290,000

Highly Compensated Employees Section 414(q)(1)(B)

$160,000

$160,000

Key Employee Section 416(i)(1)(A)(i)

$230,000

$235,000

Includible Compensation –

Section 401(a)(17)

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SEP Compensation

SEP Earnings Threshold

$350,000

$350,000

$750

$360,000

$360,000

$800

Limited Governmental Plans (pre 7/1/93)

$520,000

$535,000

Section 409 Employee Stock Ownership Plan Subject to 5-Year Distribution Period

Maximum Balance

Amount Used to Determine the Lengthening of the 5-Year Period

$1,415,000

$280,000

$1,455,000

$290,000