New Year, New Limits! More Room to Save in 2026: The Numbers Are In
The IRS released the 2026 contribution and plan limits for retirement plans including 401(k), 403(b) and IRAs and HSAs – and most of the key thresholds are moving up. Higher caps mean greater opportunities for employees to optimize their savings. The increases reflect a 2.8% cost of living increase (COLA) under the Consumer Price Index for All Urban Consumers, up from 2.5% in 2025.
From elective deferrals to catch-up contributions in 401(k) and 403(b) plans to defined benefit plan limits, the IRS has raised the bar for 2026. Plan sponsors should review plan documents, administrative procedures, and employee communications to ensure timely compliance - including the new “super catch-up contribution” for employees nearing retirement age.
If you have any questions about the 2026 limits or other employee benefit matters or would like assistance with updating enrollment materials, summary plan descriptions, employee handbooks and other participant communications, please contact Susan Niver.
Vedder Thinking | Articles New Year, New Limits! More Room to Save in 2026: The Numbers Are In
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November 17,2025
The IRS released the 2026 contribution and plan limits for retirement plans including 401(k), 403(b) and IRAs and HSAs – and most of the key thresholds are moving up. Higher caps mean greater opportunities for employees to optimize their savings. The increases reflect a 2.8% cost of living increase (COLA) under the Consumer Price Index for All Urban Consumers, up from 2.5% in 2025.
From elective deferrals to catch-up contributions in 401(k) and 403(b) plans to defined benefit plan limits, the IRS has raised the bar for 2026. Plan sponsors should review plan documents, administrative procedures, and employee communications to ensure timely compliance - including the new “super catch-up contribution” for employees nearing retirement age.
If you have any questions about the 2026 limits or other employee benefit matters or would like assistance with updating enrollment materials, summary plan descriptions, employee handbooks and other participant communications, please contact Susan Niver.
