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Every 2026 limit a business owner needs in one place: $24,500 for 401(k) deferrals, $72,000 total per person, and age-based cash balance limits that can top $300,000.
Updated for 2026 IRS limits.
A free 2026 contribution illustration
For 2026, employees can defer up to $24,500 into a 401(k). Workers 50 and older can add an $8,000 catch-up, and those ages 60 to 63 can add $11,250 instead. Total contributions per person, including employer contributions, are capped at $72,000, plus catch-up.
Business owners who want to save more can add a cash balance plan, where limits are based on age and often exceed $100,000 to $300,000 a year.
| Limit | 2026 amount |
|---|---|
| 401(k) and 403(b) salary deferral | $24,500 |
| Catch-up, age 50 and older | $8,000 |
| Higher catch-up, ages 60 to 63 | $11,250 |
| Total defined contribution limit per person | $72,000, plus catch-up |
| Maximum compensation counted | $360,000 |
| Defined benefit maximum annual benefit | $290,000 |
| Highly compensated employee threshold | $160,000 |
| Key employee threshold | $235,000 |
| IRA contribution | $7,500 |
| IRA catch-up, age 50 and older | $1,100 |
| Roth catch-up wage threshold (prior-year FICA wages) | $150,000 |
Source: IRS 2026 cost-of-living adjustments.
Starting in 2026, if your FICA wages from your employer were over $150,000 in the prior year, your catch-up contributions must go in as Roth, after tax. Your regular $24,500 deferral can still be pre-tax.
Year-End Planning
Profit sharing and defined benefit plans can still be adopted for 2026, up to your tax filing deadline. See what is still possible and when each window closes.
From first call to first contribution, we handle the design, the math, and the compliance.
1
We look at your income, age, staff census, and current plan to see what’s possible.
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
Plan documents, annual actuarial work, testing, and filings, handled every year.
| Plan setup | 2026 maximum per owner |
|---|---|
| 401(k) deferrals only | $24,500, plus catch-up |
| 401(k) with profit sharing | $72,000, plus catch-up |
| 401(k), profit sharing, and cash balance plan | Often $166,000 to $416,000+, depending on age |
Learn more: 2026 Savings by Age | Cash Balance Plans | The Retirement Plan Stack | Tax Strategies for Business Owners | About Us
$24,500 in salary deferrals. Workers 50 and older can add an $8,000 catch-up, and those ages 60 to 63 can add $11,250 instead.
$72,000 per person, combining employee deferrals and employer contributions, plus any catch-up contributions.
$8,000 for ages 50 and older, or $11,250 for ages 60 to 63.
$7,500, plus a $1,100 catch-up for those 50 and older.
$160,000. Employees who earned more than that in the prior year, or who own more than 5% of the business, are generally highly compensated.
Only for employees whose prior-year FICA wages from the employer exceeded $150,000. Their catch-up contributions must be Roth.
By adding a cash balance or defined benefit plan on top of the 401(k). Limits are age-based and can add $100,000 to $300,000+ a year.
Life, Inc. Retirement Services does not offer tax advice. Please always consult your tax professional about your eligibility for tax credits.
Life, Inc. Retirement Services is a Registered Investment Advisory Firm of the state of Ohio and licensed in Florida and Maryland. All emails and communication are meant to be informative and educational and should not be considered a sale of security until proper notification and disclosures are given.