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Increased Retirement Plan Contribution Limits for 2026
November 26, 2025
At-a-Glance
The IRS released the Retirement Plan Contribution Limits for 2026 in Notice 2025-67.
Summary
On November 13, 2025, the IRS announced that cost-of-living adjustments to qualified retirement plan contribution limits will take effect on January 1, 2026.
Plan Type | 2026 | 2025 |
401(k) & 401(k) Roth | $24,500 | $23,500 |
401(k) Catch-up (50+) | $8,000 | $7,500 |
401(k) Catch-up (60-63) | $11,250* | $11,250 |
403(b), 408(k) SEP & 457 | $24,500 | $23,500 |
| 403(b), 408(k) SEP & 457 Catch-up (50+) | $8,000 | $7,500 |
403(b), 408(k) SEP & 457 Catch-up (60-63) | $11,250* | $11,250 |
| 408(p) SIMPLE | $17,000 | $16,500 |
| 408(p) SIMPLE Catch-up (50+) | $4,000 | $3,500 |
| 408(p) SIMPLE Catch-up (60-63) | $5,250* | $5,250 |
| SIMPLE IRA & SIMPLE 401(k) High Deferral Limit | $18,100 | $17,600 |
| SIMPLE IRA & SIMPLE 401(k) High Deferral Limit Catch-up (50+) | $3,850* | $3,850 |
| 401(k) Compensation Limit (Gross Compensation) | $360,000 | $350,000 |
| Definition of Highly Compensated Employee (HCE) | >$160,000* | >$160,000 |
*The amount remained unchanged for 2026.
Next Steps
Paylocity is actively incorporating these limits into its payroll system, and they will be implemented prior to the first 2026 payroll runs.
Thank you for choosing Paylocity as your valued service partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.
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