Much like our celebratory moment on the field last summer — when our firm’s softball team stepped up to the plate and swung for the fences to clinch the 2025 local accounting-firm championship — retirement plan limits are stepping up in 2026 to keep the retirement-plan game moving forward. The Internal Revenue Service has announced adjustments on the limitations affecting retirement plans.
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| RETIREMENT & SOCIAL SECURITY | 2026 Limit | 2025 Limit | 2024 Limit |
| Section 401(k), 403(b), 457(b) elective deferrals | $24,500 | $23,500 | $23,000 |
| 401(k) or 403(b) catch up contributions | $8,000 | $7,500 | $7,500 |
| 401(k) or 403(b) catch up contributions for those attaining age 60 – 63 in 2025 | $11,250 | $11,250 | $0 |
| Section 415 – Defined contribution plan maximum annual contributions without catch up | $72,000 | $70,000 | $69,000 |
| Section 415 – Defined benefit plan maximum annual benefit | $290,000 | $280,000 | $275,000 |
| Section 414(q)(1)(B) – Highly compensated employee -minimum compensation (applies to lookback years in indicated year) | $160,000 | $160,000 | $155,000 |
| Section 416 – Key employee definition – officer compensation | $235,000 | $230,000 | $220,000 |
| Section 416 – Key employee definition – 1% owner compensation | $150,000 | $150,000 | $150,000 |
| Section 401(a)(17) – Maximum includible annual compensation | $360,000 | $350,000 | $345,000 |
| IRA or Roth IRA annual contribution limit | $7,500 | $7,000 | $7,000 |
| IRA or Roth IRA annual catch up contributions | $1,100 | $1,000 | $1,000 |
| SIMPLE Salary Deferral Limit | $17,000 | $16,500 | $16,000 |
| SIMPLE Catch-up Limit | $4,000 | $3,500 | $3,500 |
With the same teamwork, attention to detail, and post-game debriefing we apply after our softball win, now’s the time to gather your retirement-plan playbook, update those thresholds, and make sure everyone on the team knows the new limits. Because in both softball and retirement-planning, small adjustments this season set up big wins down the line.
