The contributions and retirement benefits for qualified retirement plans and Individual Retirement Arrangements (IRAs) are subject to certain limits that are adjusted by the Secretary of the Treasury annually for cost-of-living increases. Highlighted below are the various 2025 and 2026 limits that impact IRAs and retirement plans.
| Limit | 2025 | 2026 |
|---|---|---|
| Plan Deferral | $23,500 | $24,500 |
| Catch-up | $7,500 | $8,000 |
| Catch-up | $11,250 | $11,250 |
| SIMPLE IRA/SIMPLE 401(k) Deferral | $16,500 | $17,000 |
| SIMPLE IRA/SIMPLE 401(k) Catch-up (individuals aged 50 or over) | $3,500 | $4,000 |
| SIMPLE Plan Catch-up | $5,250 | $5,250 |
| Limit | 2025 | 2026 |
|---|---|---|
| Compensation Limit | $350,000 | $360,000 |
| Defined Contribution §415 Limit | $70,000 | $72,000 |
| Defined Benefit §415 Limit | $280,000 | $290,000 |
| Key Employee Officer | $230,000 | $235,000 |
| Highly Compensated Employee | $160,000 | $160,000 |
| Governmental Plan Compensation Limit | $520,000 | $535,000 |
| ESOP §409(o) Limits | $1,415,000 $280,000 | $1,455,000 $290,000 |
| Roth Catch-up Wage Threshold | $150,000 | To be determined |
| Pension-Linked Emergency Savings Account | $2,500 | $2,600 |
| Domestic Abuse Distribution Maximum | $10,300 | $10,500 |
| Limit | 2025 | 2026 |
|---|---|---|
| Contributions to traditional or Roth IRA | $7,000 | $7,500 |
| Catch-up Contributions to traditional or Roth IRA (individuals aged 50 or over) | $1,000 | $1,100 |
| SEP-IRA Contribution (employer only) | $70,000 | $72,000 |
| Deductibility phaseout for IRA contributions for those with a retirement plan at work (Single) | $79,000-$89,000 | $81,000-$91,000 |
| Deductibility phaseout for IRA contributions for those with a retirement plan at work (Married Filing Jointly) | $126,000-$146,000 | $129,000-$149,000 |
| Roth IRA Direct Contribution Limit phaseout (Single) | $150,000-$165,000 | $153,000-$168,000 |
| Roth IRA Direct Contribution Limit phaseout (Married Filing Jointly) | $236,000-$246,000 | $242,000-$252,000 |
The Social Security Administration (SSA) announced an increase in the taxable wage base (TWB) for 2026 to $184,500 (was $176,100 in 2025). Workers pay Social Security tax on wages up to the TWB and some retirement plans use the TWB when allocating contributions or calculating benefits.
Although not a formal retirement plan, health savings accounts (HSA) often factor into retirement savings. The IRS announced the updated limits earlier this year. These apply to individuals under a high-deductible health plan (HDHP). The minimum deductibles and maximum out-of-pocket expenses the IRS uses to define HDHPs are outlined below, as well.
Limit | Individual | Family | ||
|---|---|---|---|---|
| 2025 | 2026 | 2025 | 2026 | |
| HSA Contribution Limits | $4,300 | $4,400 | $8,550 | $8,750 |
| Minimum Deductible for HDHPs | $1,650 | $1,700 | $3,300 | $3,400 |
| Maximum Out-of-Pocket Expenses | $8,300 | $8,500 | $16,600 | $17,000 |