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Wealth Management

Retirement Planning Key Numbers

Certain retirement plan and IRA limits rose for 2026. These tables offer an overview of the changes.

Elective deferral limits 2025 2026
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 (includes Roth contributions) Lesser of $23,500 or 100% of compensation ($31,000 if age 50 or older; $34,750 if age 60 to 63)2 Lesser of $24,500 or 100% of compensation ($32,500 if age 50 or older; $35,750 if age 60 to 63)2
SIMPLE 401(k) plans and SIMPLE IRA plans1 Lesser of $16,500 or 100% of compensation
($20,000 if age 50 or older; $21,750 if age 60 to 63)
Lesser of $17,000 or 100% of compensation
($21,000 if age 50 or older; $22,250 if age 60 to 63)
SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect
these higher limits)1
Lesser of $17,600 or 100% of compensation
($21,450 if age 50 or older; $22,850 if age 60 to 63)
Lesser of $18,100 or 100% of compensation
($21,950 if age 50 or older; $23,350 if age 60 to 63)
Starter 401(k) plans and safe-harbor 403(b) plans Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,100 if age 50 or older)
IRA contribution limits 2025 2026
Traditional and Roth IRAs Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older) Lesser of $7,500 or 100% of earned income ($8,600 if age 50 or older)
Defined benefit plan annual benefit limits 2025 2026
Annual benefit limit per participant Lesser of $280,000 or 100% of average compensation for highest three consecutive years Lesser of $290,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, and SEP plans] 2025 2026
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) Lesser of $70,000 or 100% (25% for SEP) of participant's compensation Lesser of $72,000 or 100% (25% for SEP) of participant's compensation
Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals) $2,500 $2,600
Retirement plan compensation limits 2025 2026
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs) $350,000 $360,000
Compensation threshold used to determine a highly compensated employee $2,500 $2,600
Compensation threshold used to determine a key employee in a top-heavy plan

$1 for more-than-5% owners

$230,000 for officers

$150,000 for more than-1% owners

$1 for more than- 5% owners

$235,000 for officers

$150,000 for more- than-1% owners

Compensation threshold used to determine a qualifying employee under a SIMPLE plan $5,000 $5,000
Compensation threshold used to determine a qualifying employee under a SEP plan $750 $800
Income threshold at which catch-up contributions must be designated as Roth contributions N/A $150,000
Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers:3 2025 2026
1. Covered by an employer-sponsored plan and filing as:    
Single/Head of household $79,000 - $89,000 $81,000 - $91,000
Married filing jointly $126,000 - $146,000 $129,000 - $149,000
2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan $236,000 - $246,000 $242,000 - $252,000
Income phase-out range for determining ability to fund a Roth IRA for taxpayers filing as: 3 2025 2026
Single/Head of household $150,000 - $165,000 $153,000 - $168,000
Married filing jointly $236,000 - $246,000 $242,000 - $252,000

This content has been reviewed by FINRA.

Prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Services, Inc.

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12/4/25