By Greta E. Cowart
With the budget impasse resolved, federal agencies are back to work and government employees have returned to their posts. The Internal Revenue Service returned and brought us the long-awaited list of updated lists for qualified retirement plans. This list does not include SIMPLE plans, or starter plans or governmental plans.
2026 Qualified Retirement Plan Limits
The Limits for qualified retirement plans for 2026 are as follows:
| Limit | 2026 Limit | 2025 Limit |
| Basic limit on employee elective salary deferral elections (pre-tax and Roth combined) to 401(k) or 403(b) plans | $24,500 | $23,500 |
| Total annual additions to an employee’s account in all defined contributions at the employer | $72,000 | $70,000 |
| Catch-up Contribution per employee limit for persons age 50 years or older | $8,000 | $7,500 |
| Special Extra Catch-up contribution for persons attaining ages 60, 61, 62 or 63 in 2026 | $11,250 | $11,250 |
| Amount of Wages subject to FICA taxes in prior year which trigger requirement that catch-up contribution must be contributed as Roth (post tax) contributions | $150,000 | $145,000 |
| Wages triggering treatment as a highly compensated employee | $160,000 | $160,000 |
| Compensation threshold for being treated as a key employee due to compensation received for Top Heavy Status determination | $235,000 | $230,000 |
| Maximum amount of compensation which can be considered in calculating the employer’s contribution to a defined contribution plan for calculating the contribution for an employee | $360,000 | $350,000 |
| Control Employee compensation for fringe benefit valuation purposes | $145,000 | $140,000 |
| Qualified Long Term Care Distribution limit with respect to a distribution to purchase long term care insurance | $2,600 | $2,600 |
| Amount of distribution to a victim of domestic abuse | $10,500 | $10,300 |
| Defined benefit pension plan annual limit on the benefit paid compensations without considering reductions for participants who separated before January 1. 2026 | $290,000 | $280,0000 |
| Taxable Wage Base for calculating a permitted disparity contribution to a defined contribution plan | $184,500 | $176,100 |
| PBGC Premiums for single employer plans: | ||
| Flat rate premium | $111 | $106’ |
| Variable rate premium per $1,000 of unfunded vested benefits | $52 | $52 |
| Per participant variable rate premium cap | $751 | $717 |
There are additional annual adjustments to the limits and potential taxes for health plans. Further details will be provided as guidance is finalized and released.
The opinions expressed are those of the author and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice. For additional assistance please contact Greta E. Cowart or a member of the Employee Benefits & Executive Compensation (EBEC) practice.
Meet Greta
Meet GretaGreta E. Cowart has counseled employers for more than 30 years on best practices in human resources and employee relations related to benefits and executive compensation. In her practice, Greta routinely develops strategies for effective administration of claims and other disputes, including defense of grievances, and in ERISA claim litigation, while also considering applicable labor and employment laws. Greta also provides fiduciary training and review of fiduciary operations to improve the documentation of the fiduciary process.
