- with Senior Company Executives, HR and Finance and Tax Executives
The IRS has issued Notice 2025-67, announcing that many of the key retirement plan limits will increase next year. Most limits are subject to modest increases, with some remaining the same. For example, the compensation threshold for determining highly compensated employees and the "super catch-up" contribution limit remain the same for 2026.
GROOM INSIGHT:Notice 2025-67 confirms that the mandatory Roth catch-up requirement applies to employees with 2025 FICA wages in excess of $150,000, increased from $145,000. Employers should review their payroll systems and employee communications in light of this late-announced increase.
The Social Security Administration and PBGC also recently announced adjustments for the Social Security wage base, PBGC premiums, etc., for next year. The chart below reflects the key limits, along with other frequently used benefit and compensation items, for 2026.
Retirement Benefit and Contribution Limit Changes (PDF version here)
| 2025 | 2026 | |
|---|---|---|
| 401(k), 403(b), 457(b) and SARSEP Elective Deferrals |
$23,500 | $24,500 |
| Catch-Up Contributions to 401(k), 403(b) and Governmental 457 Plans |
$7,500 | $8,000 |
| "Super" Catch-Up Contributions to 401(k), 403(b) and Governmental 457 Plans |
$11,250 | $11,250 |
| FICA Wage Threshold for Mandatory Roth Catch-Up Requirement |
$145,000 | $150,000 |
| Elective Contributions to SIMPLE Plans1 | $16,500 | $17,000 |
| Catch-Up Contributions to SIMPLE Plans2 | $3,500 | $4,000 |
| "Super" Catch-Up Contributions to SIMPLE Plans | $5,250 | $5,250 |
| IRA Contributions | $7,000 | $7,500 |
| Catch-Up IRA Contributions | $1,000 | $1,100 |
| Annual Limitation on Compensation | $350,000 | $360,000 |
| 415 Limitation on DB Benefits | $280,000 | $290,000 |
| 415 Limitation on DC Plan Contributions | $70,000 | $72,000 |
| Highly Compensated Employee Threshold | $160,000 | $160,000 |
| Key Employee Compensation Threshold | $230,000 | $235,000 |
| Domestic Abuse Victim Distributions | $10,300 | $10,500 |
| Pension-Linked Emergency Savings Accounts | $2,500 | $2,600 |
| Social Security Wage Base | $176,100 | $184,500 |
| PBGC Flat-Rate Premium (Single Employer Plans) |
$106 | $111 |
| PBGC Variable-Rate Premium (Single Employer Plans) |
$52/$1,000 UVBs ($717/ppt cap) | $52/$1,000 UVBs ($751/ppt cap) |
As in 2025, there are also increases in various AGI phase-out ranges for IRA deductions, Roth IRA eligibility, and the Saver's Credit, for example. See Notice 2025-67.
As discussed in a prior client alert, the IRS also recently issued the majority of 2026 limits applicable to health and welfare benefits. Rev. Proc. 2025-32 (Oct. 29, 2025). These limits are in addition to those that the IRS issued earlier this year. Rev. Proc. 2025-19 (May 1, 2025).
Footnotes
1 Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain SIMPLE retirement accounts/plans of small employers. For 2026, this higher amount is $18,100.
2 Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain SIMPLE retirement accounts/plans of small employers. For 2026, this limit remains at $3,850.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
