Complete Story
11/18/2025
IRS Sets 401(k) Annual Contribution Limit for 2026
Source: HR Dive, November 17, 2025
Unlike last year, the agency also announced an increase to the contribution cap for individual retirement accounts.
Employees enrolled in 401(k) plans will be able to contribute up to $24,500 to those plans in 2026, an increase of $1,000 from last year’s cap of $23,500, the IRS announced Thursday. The new annual contribution limit will also apply to 403(b) plans, governmental 457 plans and the Thrift Savings Plan.
Unlike last year, the IRS also announced an increase to the contribution cap for individual retirement accounts, or IRAs, to which participants will be eligible to contribute $7,500. The IRA catch-up contribution limit for individuals ages 50 and over will similarly increase to $1,100 pursuant to provisions of the SECURE 2.0 Act of 2022.
The catch-up rate for those participating in most other plans, including 401(k) plans, will be set at $8,000 next year, up from $7,500 in 2025. A higher limit applies to employees aged 60 through 63, the IRS noted.
Next year’s 401(k) contribution cap adjustment is the largest year-over-year increase by the agency since 2023, when the IRS set a contribution limit $2,000 higher than that of 2022.
The larger increase may show that the IRS accounted for higher inflation levels in 2025 than in previous years, but the size of the increase is not significant otherwise, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute.
An Evening Celebrating Print Excellence
From Best of Show and Rising Star honors to the excitement of the People's Choice competition, the Print Excellence Awards Grand Ceremony is the industry's biggest celebration of the year. Gather your team and register today.
Read MoreSB54 & SB343: What the Latest Updates Mean for Our Industry
Packaging and recycling laws are rapidly changing, and recent developments can severely impact the print and visual communications industry. Join GMA and APAN as we present RJ Cervantes, from Resilient Advocacy, to provide a webinar to update members on SB 343 & SB 54.
Read MoreProtect Your Business From Phishing Attacks
Phishing remains one of the most common cybersecurity threats facing businesses today. A single click on a fraudulent email, text, or website can expose sensitive information, disrupt operations, and lead to costly consequences. Learn how to recognize the warning signs and better protect your organization.
Read MoreThe Digital Fade Is Here
Consumer tolerance for digital messaging is shrinking—and it's changing how brands connect. More than half of consumers say they spend too much time on their devices and most admit they ignore online ads. Marketers are taking notice: 90% of marketing leaders are increasing direct mail budget this year, and support for the shift is growing. From smarter AI-driven personalization to new USPS postage incentives. It's a reminder that in a crowded digital landscape, paper still delivers.
Read MoreCannabis Laws Are Changing: 8 Questions Employers Should Ask Now
As cannabis laws continue to evolve and positive drug test rates rise, employers face new challenges balancing workplace safety, staffing needs, and legal compliance. Learn how changing regulations are impacting workplace policies and the key questions every employer should be asking.
Read MoreHow to Avoid the Price Objection From Existing Clients
Want that repeat order without being subjected to low ball pricing from a rogue competitor? Follow the advice in this week's Short Attention Span Sales Tip by Bill Farquharson.
Read More