The IRS released the 2026 cost-of-living adjustments for 401(k), 403(b), 457, IRAs, SIMPLE plans, and related tax thresholds. We will make more updates when more data are available.
Defined Contribution & Deferral Limits
- 401(k)/403(b)/most 457/TSP elective deferral: $24,500 (previous $23,500).
- 50+ catch-up (401(k)/403(b)/457): $8,000 (previous $7,500); age 60–63 special catch-up: $11,250 (unchanged).
- Total DC additions (415(c) limit): $72,000 (previous $70,000) including employee + employer. For those 50+ with catch-up, the limit is $80,000.
- 457(b) deferral (governmental and tax-exempt): $24,500 (previous $23,500).
- Starter 401(k)/starter 403(b) deferral: $6,000 with a $1,100 catch-up for age 50+ (unchanged).
- Compensation limit (401(a)(17), 404, SEP): $360,000 (previous $350,000); governmental plan COLA cap (pre-7/1/93) $535,000 (previous $520,000).
- Highly Compensated Employee threshold: $160,000 (unchanged).
- Key employee (top-heavy) officer compensation: $235,000 (previous $230,000).
2. Solo 401(k) and SEP IRA
Solo 401(k):
- Eligibility: For self-employed individuals/business owners without employees.
- Employee contributions: $24,500 (previous $23,500).
- Catch-up contributions (ages 50+): An additional $8,000 (previous $7,500).
- Catch-up contributions (ages 60-63): An additional $11,250 (unchanged).
- Employer contributions: Up to 25% of compensation.
- Total combined limit (Employee + Employer): $72,000 (previous $70,000) or 25% of compensation, whichever is less.
SEP IRA:
- Employer contributions: Up to 25% of compensation, up to $72,000 (previous $70,000).
- Catch-up contributions: No catch-up contribution is allowed for SEP IRAs.
Defined Benefit Plans
- Maximum annual benefit (415(b)): $290,000 (previous $280,000).
- Adjustment factor for prior separations: 1.0288 applied to 2025 limit.
SIMPLE & SEP
- SIMPLE IRA / SIMPLE 401(k) deferral: $17,000 (previous $16,500).
- SIMPLE 50+ catch-up (standard): $4,000 (previous $3,500); age 60–63 SIMPLE catch-up: $5,250 (unchanged).
- SIMPLE higher deferral options (408(p)(2)(E)(i)(I)/(II)): $18,100 (previous $17,600).
- SEP minimum compensation for participation: $800 (previous $750).
Individual Retirement Arrangements (IRA)
- Traditional/Roth IRA contribution limit: $7,500 (previous $7,000).
- IRA 50+ catch-up: $1,100 (previous $1,000) — total $8,600 for age 50+.
- Traditional IRA deduction phase-outs (active participant): Single/HOH $81,000–$91,000 (previous $79,000–$89,000); MFJ (contributing spouse active) $129,000–$149,000 (previous $126,000–$146,000); MFS $0–$10,000.
- Traditional IRA deduction when spouse is active, contributor is not: MFJ $242,000–$252,000 (previous $236,000–$246,000).
- Roth IRA income phase-outs: MFJ/QW $242,000–$252,000 (previous $236,000–$246,000); Single/HOH $153,000–$168,000 (previous $150,000–$165,000); MFS $0–$10,000.
Retirement Savings Contributions Credit (Saver’s Credit)
- Married filing jointly AGI thresholds: $48,500 / $52,500 / $80,500 (previous $47,500 / $51,000 / $79,000).
- Head of household AGI thresholds: $36,375 / $39,375 / $60,375 (previous $35,625 / $38,250 / $59,250).
- Single or MFS AGI thresholds: $24,250 / $26,250 / $40,250 (previous $23,750 / $25,500 / $39,500).
Health Savings Account (HSA)
| Coverage Type | 2026 Limit | 2025 Limit |
|---|---|---|
| Individual | $4,400 | $4,300 |
| Family | $8,750 | $8,550 |
| Catch-up (age 55+) | $1,000 | $1,000 |
Eligibility: Must have a high-deductible health plan (HDHP).
Tax Benefits: Tax-free growth; penalty-free medical withdrawals; penalty-free non-medical withdrawals after age 65 (taxable).
Flexible Spending Account (FSA) Limits
- Health Care FSA maximum contribution: $3,400 (previous $3,300).
- Health Care FSA carryover maximum: $680 (previous $660) into 2027, with re-enrollment.
- Dependent Care FSA maximum contribution: $7,500 per household or $3,750 per individual (including married filing separately) (unchanged).
Other Notable Adjustments
- Roth catch-up wage threshold (SECURE 2.0): $150,000 (previous $145,000) to determine if age-based catch-ups must be Roth.
- Pension-linked emergency savings account cap: $2,600 (previous $2,500).
- Qualified transportation fringe benefit (parking and transit): $340 per month per account (unchanged).
Verify plan documents, payroll systems, and participant materials reflect these 2026 limits before the first payroll of the year. For custom summaries or plan-specific notices, See MyPlanIQ.com Plan Search.