Announcements

January 17, 2026

2026 contribution limits

Contribution maximums and other dollar limits are readjusted annually based on inflation.

The table below shows the allowable contribution amounts and dollar limits for 2026 and 2025

Retirement plan contribution and dollar limits

Type

Limits

 

 

2026

2025

401(k) deferrals (total traditional and Roth employee contributions)

$24,500

$23,500

Catch-up contribution (Ages 50-59 and 64+)

$8,000

$7,500

Catch-up contribution (Age 60-63)

$11,250

$11,250

Annual additions limit for DC plans

$72,000*

$70,000*

Annual compensation limit

$360,000

$350,000

Lookback year† compensation for Highly Compensated Employees (HCEs)

$160,000

$160,000

Taxable wage base for Social Security

$184,500

$176,100

Taxable wage base for Medicare

Unlimited

Unlimited

 Footnotes/Important information:

* The DC annual additions limit is effective for limitation years ending in the calendar year.

† Use current lookback year compensation to determine HCEs for the following year. For example, use the 2026 lookback compensation threshold above for 2027 HCE determination. Use the 2025 lookback compensation threshold ($160,000) for 2026 HCE determination.

You may wish to inform employees in your 401(k) plans of these changes. The letters below, which you can customize, can help you get started. Simply replace the bolded, italicized sections with information that relates to your company or plan. One letter includes catch-up contributions and the other does not.

2026 contribution limits letter with catch-up contributions

2026 contribution limits letter without catch-up contributions

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