The IRS recently released the 2026 cost-of-living adjustments (COLAs) for pension and 401(k) plan limitations.
Here are the highlights:
- The elective deferral limit under IRC Section 402(g) increased from $23,500 to $24,500 for 2026.
- The Internal Revenue Code (IRC) Section 415(c) contribution limit applicable to defined contribution retirement plans increased from $70,000 to $72,000 for 2026.
- The IRC Section 401(a)(17) annual compensation limit applicable to retirement plans increased from $350,000 to $360,00 for 2026.
- The highly compensated employee threshold under IRC Section 414(q)(1)(B)) remains $160,000 for 2026.
- New rule for 2026 — Under the SECURE 2.0 Act requires employees who earned more than $150,000 in FICA wages in the prior calendar year (2025) to make any catch-up contributions to an employer-sponsored plan (e.g., a 401(k), 403(b), or governmental 457(b)) on a Roth (after-tax) basis.
View our summary of the indexed amounts for 2023 to 2026. We recommend working with your recordkeeper to discuss any necessary changes to your plan.
