The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2025 in Notice 2025-67.
The following chart details 2026 retirement plan dollar limitation cost-of-living adjustments:
| Limitation Description | 2025 | 2026 |
| Maximum annual benefit under a defined benefit plan under IRC Section 415(b)(1)(A) | $280,000 | $290,000 |
| Maximum annual contribution to an individual’s defined contribution plan account under IRC Section 415(c) | $70,000
(plus catch-up) |
$72,000
(plus catch-up) |
| Elective contribution limit under IRC Section 402(g)(1) (for 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan) | $23,500 | $24,500 |
| Maximum amount of annual compensation that may be taken into account for determining benefits or contributions to retirement plans under IRC Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) | $350,000 | $360,000 |
| Dollar amount for determining maximum account balance in an employee stock ownership plan subject to a 5-year distribution period under IRC Section 409(o)(1)(C)(ii) | $1,415,000 | $1,455,000 |
| Dollar amount used for determining the lengthening of the 5-year distribution period in an employee stock ownership plan under IRC Section 409(o)(1)(C)(ii) | $280,000 | $290,000 |
| Amount of compensation to be a “key” employee under a “top-heavy” plan under IRC Section 416(i)(1)(A)(i) | $230,000 | $235,000 |
| Dollar limitation used in the definition of “highly compensated employee” under IRC Section 414(q)(1)(B) | $160,000 | $160,000 (No Adjustment) |
| Limitation under IRC Section 408(p)(2)(E) for salary deferral contributions to SIMPLE retirement accounts | $16,500 | $17,000 |
| Limitation concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan under IRC Section 664(g)(7) | $60,000 | $65,000 |
| Catch-up contribution limit for employees who are age 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan | $7,500 | $8,000* |
| Minimum compensation amount under IRC Section 408(k)(2)(C) for simplified employee pensions (SEPs) | $750 | $800 |
| IRA contribution limit for | $7,000 | $7,500 |
| IRA catch-up contribution limit for individuals who are age 50 and over | $1,000 | $1,100 |
| Wage Base For Social Security Tax | $176,100 | $184,500** |
*The SECURE 2.0 Act provided increased catch-up contributions for individuals age 60 to 63, which remains unchanged from the 2025 limit at $11,250.
**October, 24, 2025 SSA announcement
Please click here for more details on the changes made by IRS Notice 2025-67.