SIMPLE IRA
Elective deferral limit
$16,500
$17,000
Catch-up limit for individuals age 50–59 and 64+
$3,500
$4,000
Catch-up limit for individuals ages 60–63^
$5,250
$5,250
Maximum employer match ($1 for $1 match on the first 3% of employee
compensation deferred)
$16,500
$17,000
Catch-up deferral is also matched by employer if individual is age 50
or older
$3,500
$4,000
Maximum employer nonelective contribution
(2% of employee’s compensation, up to $350k in 2025 and $360k in 2026)
$7,000
$7,200
Additional (optional) Employer nonelective contribution of up to 10% of
earnings capped at $5,000. (Employer must uniformly provide enhanced
NEC to all participants)
$5,100
$5,300
Some new limitations will apply to retirement plans and other benefit plans in 2026
as a result of cost-of-living adjustments made by the IRS and the Social Security
Administration. The limits for 2026, as well as the 2025 limits, are as follows:
2025/2026 dollar
limitations for
retirement plans
Account types
2025 Limit
2026 Limit
IRA
Traditional and Roth IRA contribution limit
$7,000
$7,500
Catch-up limit for individuals age 50 and older
$1,000
$1,100
SEP IRA
Maximum SEP contribution
$70,000
$72,000
SEP compensation exclusion
$750
$800
401(k), SARSEP, 403(b)
and Governmental 457(b)
Elective deferral limit
$23,500
$24,500
Catch-up limit for individuals age 50–59 and 64+
$7,500
$8,000
Profit Sharing, 401(k) and
Money Purchase Pension
Catch-up limit for individuals ages 60-63
$11,250
$11,250
Defined contribution limit (415(c) limit)
$70,000
$72,000
Profit Sharing, 401(k), SEP and
Money Purchase Pension
Employee annual compensation limit
$350,000
$360,000
401(k), SARSEP, 403(b) and
Governmental 457(b)
Highly compensated employee limit (no requirement for 5% owner)
$160,000
$160,000
Profit Sharing, 401(k) and
Money Purchase Pension
Top-heavy plan key employee compensation limit
$230,000
$235,000
Defined Benefit
Maximum annual benefit at retirement
$280,000
$290,000
Section 116 and 117 of SECURE 2.0 Act provide for additional (optional) Employer contribution methods and increased contribution limits dependent upon the number of
employees in the prior year who earned at least $5,000 in compensation, and whether or not enhanced match or non-elective contributions are provided.
^ If your plan is adopting the SECURE 2.0 special catch-up limit contribution for ages 60 to 63, these employees can contribute a catch-up amount that is the greater of $5,250
or 150% of the regular catch-up limit.
Neither RBC Wealth Management, a division of RBC Capital Markets, LLC (“RBC WM”), nor its affiliates or employees provide legal, accounting or tax advice. All legal,
accounting or tax decisions regarding your accounts and any transactions or investments entered into in relation to such accounts, should be made in consultation with
your independent advisors. No information, including but not limited to written materials, provided by RBC WM or its affiliates or employees should be construed as legal,
accounting or tax advice.
2025/2026 dollar limitations for retirement plans, continued
2025/2026 dollar
limitations for
retirement plans
Account types
2025 Limit
2026 Limit
401(k), SARSEP, 403(b)
and Governmental 457(b)
Catch-up limit for individuals ages 60-63
$11,250
$11,250
Profit Sharing, 401(k), SEP and
Money Purchase Pension
Catch-up limit for individuals ages 60-63
$11,250
$11,250
Defined contribution limit (415(c) limit)
$70,000
$72,000
Profit Sharing, 401(k), SEP and
Money Purchase Pension
Employee annual compensation limit
$350,000
$360,000
401(k), SARSEP, 403(b) and
Governmental 457(b)
Highly compensated employee limit (no requirement for 5% owner)
$160,000
$160,000
Profit Sharing, 401(k) and
Money Purchase Pension
Top-heavy plan key employee compensation limit
$230,000
$235,000
Defined Benefit
Maximum annual benefit at retirement
$280,000
$290,000
*Section 116 and 117 of SECURE 2.0 Act provide for additional (optional) Employer contribution methods and increased contribution limits dependent upon the number of
employees in the prior year who earned at least $5,000 in compensation, and whether or not enhanced match or non-elective contributions are provided.
^ If your plan is adopting the SECURE 2.0 special catch-up limit contribution for ages 60 to 63, these employees can contribute a catch-up amount that is the greater of $5,250
or 150% of the regular catch-up limit.
Modified Adjusted Gross Income (MAGI) phase-out ranges for traditional IRA deduction when taxpayer is covered by a
retirement plan at work
Filing status
2025 Limit
2026 Limit
Single or head of household
$79,000–$89,000
$81,000–$91,000
Married filing jointly
$126,000–$146,000
$129,000–$149,000
Married filing jointly for non-covered spouse with a spouse who is an active participant
$236,000–$246,000
$242,000–$252,000
MAGI phase-out ranges for Roth IRA annual contributions
Filing status
2025
2026
Single or head of household
$150,000–$165,000
$153,000–$168,000
Married filing jointly
$236,000–$246,000
$242,000–$252,000
Social Security
2025
2026
Social Security taxable wage base
$176,100
$184,500
Maximum earnings for individuals under normal retirement age before Social Security
benefits are reduced. One dollar in benefits will be withheld for every $2 in earnings
above the limit
$23,400
($1,950/mo)
$24,480
($2,040/mo)
Maximum Social Security benefit at Social Security full retirement age
$4,018
$4,152
529/Gift Tax Exclusion
Filing status
2025
2026
Single or head of household
$19,000
$19,000
Married filing jointly
$38,000
$38,000
Health Savings Accounts (HSAs)
2025
2026
Maximum contribution limit
Single
$4,300
$4,400
Family
$8,550
$8,750
Catch-up (age 55 by the end of the year)
$1,000
$1,000
Minimum annual deductible for High
Deductible Health Plan (HDHP)
Single
$1,650
$1,700
Family
$3,300
$3,400
HDHP maximum out-of-pocket expenses
Single
$8,300
$8,500
Family
$16,600
$17,000
