The Internal Revenue Service has announced the 2026 retirement plan limits and the Social Security wage bases and rates. This year, the impact of inflation affected retirement plan limits.
The Contribution limit has been increased to $24,500, and the Catch-Up provision has been increased to $8,000.
Other notable changes are:
- There is now a Roth Catch-Up requirement for those who earned over $150,000 in FICA Wages in 2025 (wages must be earned at current company for requirement to apply)
- Annual Compensation limit increased from $350,000 to $360,000
- The “Super Catch-up” Contribution limit for individuals between ages 60 and 63 remains the same at $11,250
These new limits take effect on January 1, 2026. We recommend that you confirm with your payroll provider that all of their systems will be updated with these new limits. Specifically confirming that any calculations based on these updated limits will also be updated (such as your match).
