The Internal Revenue Service (IRS) issued Notice 2025-67 providing the new 2026 contribution limits for qualified retirement plans. Effective January 1, 2026: (1) the limitation on the annual benefit under a defined benefit plan is increased from $280,000 to $290,000; (2) the limitation on contributions to 401(k), 403(b), and 457 defined contribution plans for employees under age 50 is increased from $23,500 to $24,500; (3) the catch-up contribution limit for those age 50 and older is increased from $7,500 to $8,000 (for a total contribution of $32,500), and may increase to $11,500 for those ages 60-63 (for at total contribution of $36,000); and (4) the overall contribution limit for IRAs is increased from $7,000 to $7,500, with the catch-up contribution for those age 50 and older increasing to $1,100. The notice also provides limitations for 2026 for Roth IRAs, the Saver’s Credit, and SIMPLE retirement accounts.
