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2026 Retirement Plan Contribution Limits
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.
Know Your Limits
A free 2026 contribution illustration
What are the 2026 401(k) contribution limits?
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.
2026 retirement plan limits
| 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.
The new Roth catch-up rule
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.
- The rule is based on wages from the employer sponsoring the plan.
- Partners and sole proprietors with self-employment income instead of W-2 wages generally aren’t affected.
- The plan must offer Roth contributions for affected employees to make catch-ups at all.
Year-End Planning
2026 isn’t over yet.
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.
How We Build Your Plan
From first call to first contribution, we handle the design, the math, and the compliance.
1
Review Your Business
We look at your income, age, staff census, and current plan to see what’s possible.
Design Your Stack
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
See the Numbers First
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
We Run It for You
Plan documents, annual actuarial work, testing, and filings, handled every year.
How much can a business owner contribute in 2026?
| 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 |
Other plan limits for 2026
- SEP IRA: up to 25% of compensation, capped at $72,000. Employees must earn at least $800 to be covered.
- Solo 401(k): the same $24,500 deferral and $72,000 total limits apply. See moving from a solo 401(k).
- Cash balance plan: no flat dollar limit. Contributions are based on age and the $290,000 maximum benefit.
Why business owners work with Life, Inc.
- Everything under one roof. Plan design and administration, investment advisory, and insurance strategies, all from one team. No juggling three different firms.
- A credentialed, in-house team. Our plan specialists hold industry designations including QKA, QPA, and AIF, and handle your plan year round.
- Independent and unbiased. We work with the recordkeeper that fits your business and don’t take kickbacks from any of them.
- Custom, not cookie-cutter. Every plan is designed around the owners’ tax goals first, then built to pass IRS testing.
- Nationwide. We design and administer plans for businesses across the country.
Learn more: 2026 Savings by Age | Cash Balance Plans | The Retirement Plan Stack | Tax Strategies for Business Owners | About Us
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Our Most
Asked Questions
What is the 401(k) contribution limit for 2026?
$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.
What is the total 401(k) limit with employer contributions in 2026?
$72,000 per person, combining employee deferrals and employer contributions, plus any catch-up contributions.
What is the 2026 catch-up contribution limit?
$8,000 for ages 50 and older, or $11,250 for ages 60 to 63.
What is the IRA contribution limit for 2026?
$7,500, plus a $1,100 catch-up for those 50 and older.
What is the highly compensated employee threshold for 2026?
$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.
Do catch-up contributions have to be Roth in 2026?
Only for employees whose prior-year FICA wages from the employer exceeded $150,000. Their catch-up contributions must be Roth.
How can a business owner contribute more than $72,000?
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.
Some Of Our Trusted Partners:
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.