401(k) Contribution Limits for 2026: What Changed and What Employers Need to Know
The IRS confirmed 2026 retirement plan contribution limits in November 2025 (Notice 2025-67). The elective deferral limit for 401(k), 403(b), and most 457 plans increases to $24,500 (up from $23,500 in 2025). The catch-up contribution limit for participants age 50 and older remains $7,500, bringing the total to $32,000.
The SECURE 2.0 Roth Catch-Up Rule
Beginning in 2026, participants who earned more than $145,000 in the prior year must make their catch-up contributions as Roth (after-tax) contributions. This is a mandatory change, not optional, and plan administrators need to ensure their systems are updated to handle it.
SIMPLE 401(k) Limits
The SIMPLE 401(k) contribution limit increases to $17,600 for 2026.
What Employers Should Do Now
Confirm your plan document and payroll system are updated for the Roth catch-up requirement. Review your employer match formula to ensure it remains competitive. Contact A&C Management Group if you want your 401(k) plan reviewed alongside your health benefits strategy.