The Internal Revenue Service (IRS) has released the new contribution limits for 2026, reflecting ongoing adjustments due to inflation and financial fluctuations. Many of these limits have increased, allowing individuals to save more for their future. Below are highlights of the contribution limits for 2025 and the new figures for 2026.
2026 Contribution Limits Numbers
401(k),457(b)and 403(b)Contribution Limits
This is the maximum total amount an individual can contribute to a qualified retirement plan in a given year, combining both pre-tax and after-tax Roth contributions. The limit will increase by $1,000 from 2025 to 2026.
2026: $24,500
2025: $23,500
Catch-up Contribution Limit
This is the maximum amount individuals aged 50 and older can contribute as catch-up contributions within a year. Retirement plan regulations allow catch-up contributions for governmental 457(b) plans, but not for non-governmental 457(b) plans. Availability of catch-up contributions for governmental 457(b), 401(k), and 403(b) plans depends on the plan's specific rules. This limit remains the same from 2025 to 2026.
2026: $8,000
2025: $7,500
Defined Contribution Limit
This limit is commonly referred to as the '415 limit' or 'annual additions limit'. It represents the total of employer contributions, nondeductible employee contributions, and any forfeitures. This limit increases by $2,000 from 2025 to 2026.
2026: $72,000
2025: $70,000
Annual Compensation Limit
This is the maximum amount of compensation that can be considered for an individual when allocating contributions, handling forfeitures, or conducting nondiscrimination testing. This limit increases by $10,000 from 2025 to 2026.
2026: $360,000
2025: $350,000
These are just a few of the updated contribution limits for 2026 regarding 401(k), 403(b), and 457(b) retirement accounts. To learn more about the new contribution limits for IRA accounts, SEP accounts, and simple plans click here. As always, if you have any questions or would like to discuss your retirement accounts or plans, please feel free to reach out to us at Pine Harbor Advisors. You can click here to schedule a meeting, send us an email info@pineharboradvisors.com or call us at 207-761-4733.