---
title: 2026 IRS COLA Limits for 401(k) Plans Released
description: The 2026 401(k) Salary Deferral limit increases to $24,500. The latest IRS release of the COLA Limits for 2026 will take effect on January 1, 2026.
---

[Uniglobal Blog | ERISA, Compliance, and Administration ](https://blog.uniglobal.com)

# [2026 IRS COLA Limits for 401(k) Plans Released](https://blog.uniglobal.com/2026-irs-cola-limits-for-401k-plans-released)

 Written by [Uniglobal](https://blog.uniglobal.com/author/uniglobal) | Nov 13, 2025 4:02:55 PM

## IRS Announces Limits for 2026

On November 13, 2025, the [IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) released the upcoming cost of living adjustments (COLA) for various retirement plan limitations that will take effect on January 1, 2026. Full COLA limits are reported by the IRS in [IRS Notice 2025-67](https://www.irs.gov/pub/irs-drop/n-25-67.pdf).

2026 brings increases across the board for many plan-specific dollar limitations, including the 401(k) deferral limit. 

## What's Increased for 2026?

- Salary Deferral contribution limit has increased to **$24,500**. 
    - This limit covers 401(k), 403(b), and 457(b) plans. It applies to plans offering Pre-Tax Elective Deferrals and/or Roth Elective Deferrals. A plan that provides for both still caps the total employee contributions (pre-tax, Roth, or a combination of the two) at this limit.
- The 414(v)(2)(B)(i) dollar limitation for** catch-up contributions** to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) **has increased to $8,000**. 
    - Catch-up in this instance refers to the salary deferral contributions of a plan participant turning 50, or who is over age 50, in 2026 and that are not ages 60-63.
- The maximum defined contribution limit for an individual (the annual additions limit) has increased to **$72,000**. 
    - This is the total amount any one individual can have contributed by or for themselves, It includes salary deferrals of $24,500 plus any employer contributions, collectively not exceeding $72,000. It is **exclusive** of age 50 catch-up amounts.
- The annual compensation limit (the maximum that is considered for qualified plans) has increased to **$360,000**. 
    - Compensation is used for many plan purposes, including, but not limited to, employer allocation preparation and [nondiscrimination testing](https://knowledge.uniglobal.com/compliance/non-discrimination/whats-nondiscrimination-testing).
- The Social Security Taxable Wage Base is now **$184,500** per the [SSA release](https://www.ssa.gov/news/en/cola/factsheets/2026.html). 
    - For retirement plans that use an [Integrated profit sharing](https://blog.uniglobal.com/everything-you-need-to-know-about-new-comparability-and-why-we-love-it) formula, for example, should know that this limit has also increased.
- The 414(v)(2)(B)(ii) dollar limitation for catch-up contributions to an applicable employer plan described in section 401(k)(11) or section 408(p) for individuals aged 50 or  older has increased from $3,500 to **$4,000**.
- The dollar compensation limit under section 416(i)(1)(A)(i) for “key employee” in a top-heavy plan has increased from $230,000 to **$235,000**.

What's Not Increased?

- The compensation limit used in the definition of a “highly compensated employee” (HCE) under 414(q)(1)(B) remains $160,000.
- The limitation under section 414(v)(2)(E)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in 2026 remains at** $11,250**.

Limits enacted under SECURE 

- **January 1, 2025: Age 60-63 Catch-Up Contributions** 
    - Starting in 2025, individuals of ages 60 to 63 will have increased catch-up contribution limits; capped at the greater of $10,000, or 50% more than the regular catch-up amount for the year.
    - The catch-up contribution maximum for employees age 50+ is $8,000 for 2026 ($4,000 for SIMPLE plans) and adjusted for inflation annually.
    - The limitation under section 414(v)(2)(E)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in **2025 and 2026 is $11,250**.

- January 1, 2026: Catch-Up Contribution as designated Roth Contributions 
    - Plan Participants that have prior year FICA wages from the employer of $**150,000** or higher, (as will be adjusted in the future for inflation) and contribute catch-up contributions to a qualified retirement plan, are required to be ROTH Contributions, *even if regular contributions are pre-tax*. Review our SECURE Act page for more information [here](https://www.uniglobal.com/secure-act-2.0). 

2026 IRS Select COLA Limits Summary Chart ([full version](https://www.uniglobal.com/resources/contribution-limits))

| **Plan Section Limit** | **2026** | **2025** | **2024** |
| --- | --- | --- | --- |
| Maximum Defined Contribution Annual Additions | **$72,000** | $70,000 | $69,000 |
| Salary Deferral 401(k)/403(b) Limit | **$24,500** | $23,500 | $23,000 |
| Catch-Up Limit (Age 50 or Over) | **$8,000** | $7,500 | $7,500 |
| Maximum Compensation for Retirement Plan Purposes | **$360,000** | $350,000 | $345,000 |
| HCE Compensation Limit | **$160,000** | $160,000 | $155,000 |
| Key Employee Officer | **$235,000** | $230,000 | $220,000 |
| Social Security Taxable Wage Base | **$184,500** | $176,100 | $168,600 |

Check out our full [Contribution Limit](https://www.uniglobal.com/resources/contribution-limits) page for all the COLA limits plus historical limits. 

### **More Information on 2026 COLA Limit Increases**

Learn more about these increases and how they impact your retirement plan by contacting [Uniglobal](https://www.uniglobal.com/connect/) and your Uniglobal consultant.

Additional information on limit changes for 2026 can be found in the [IRS Retirement Topics](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) page. The IRS page [401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) expands on the highlights in this post. The IRS also provides a tool if you’d like to get a [Retirement Savings Check-Up](https://www.irs.gov/retirement-plans/mid-year-retirement-savings-check-up).

[View full post](https://blog.uniglobal.com/2026-irs-cola-limits-for-401k-plans-released)

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