The IRS has finalized and released updated retirement plan contribution limits for 2026. The deferral limit for 401(k) and 403(b) plans is $24,500 for 2026, up from $23,500 in 2025. If you are age 50 or older, you also are allowed a “catch-up” contribution to encourage additional savings, which is $8,000 in 2026 up from $7,500 in 2025, for a total employee contribution of $32,500 in 2026.
Again in 2026, there is an additional “super catch-up” provision for those ages 60, 61, 62, or 63. These individuals are allowed an additional catch-up of $3,250 for a total catch-up contribution of $11,250.
The big change coming in 2026 is that "catch-up" contributions for those individuals earning more than $150,000 in 2025 must now be contributed to the Roth source of deferrals instead of the pre-tax source of deferrals. This applies to plan participants in 401(k), 403(b), and 457(b) plans. If your plan does not currently offer a Roth contribution, and the plan is not amended, then you may not contribute.
Lastly, the IRS has also increased the contribution limit for IRAs. The standard contribution will now be $7,500, up from $7,000 in 2025. There is also an additional $1,100 “catch-up” contribution available to those age 50 years and older for a total contribution of up to $8,600 in 2026. Please keep in mind that IRAs and Roth IRAs have income considerations, which have been adjusted for 2026, so be sure to review the income thresholds before making contributions.
If you have questions related to 2026 retirement plan changes, whether you are a plan sponsor or participant, reach out to the First Bank Wealth Management team today.
Andrew Rzonca
Private Wealth Advisor
(636) 448-6692
[email protected]
Andrew Rzonca has over 10 years of experience in financial services helping families of multi-generational wealth. His investment experience includes public and private markets, tax strategies, and financial planning. Andrew has a Bachelor of Science in Finance with a concentration in entrepreneurship from the University of Kansas.
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