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Annual Contribution Limits

Maximum Amounts that Can Be Funded to Qualified Retirement Plans

ERISA has established plan limits for contributions and benefits that apply to all qualified retirement plans. The chart below outlines the maximum contribution (or benefit) that can be funded to each type of qualified retirement plan. These limits are indexed annually for inflation.

Limit Type

2026

2025

2024

Maximum Employee 401(k) or 403(b) Deferral

$24,500

$23,500

$23,000

Employee Catch-up Contributions*

$8,000

$7,500

$7,500

Traditional and Roth IRA

$7,500

$7,000

$7,000

Traditional and Roth IRA Catch-up

$1,100

$1,000

$1,000

Maximum Contribution to Defined Contribution Plan

$72,000

$70,000

$69,000

Maximum Benefit in a Defined Benefit Limit

$290,000

$280,000

$275,000

Annual Limit on Compensation 

$360,000

$350,000

$345,000

Roth Catch-up Contribution Compensation Threshold1

$150,000

N/A

N/A

Highly Compensated Employees

$160,000

$160,000

$155,000

Social Security Wage Base

$184,500

$176,100

$168,600

*For those who turn age 60, 61, 62, or 63 in 2026, the catch-up limit is $11,250.

Defined Contribution Plans

Defined contribution plans, (e.g. profit sharing plans and 401(k) plans) contain limits on the amount of annual contributions that can be funded to the plan. These include both employee and employer limits. In determining contributions, employers must exclude salary above the annual compensation limit as shown in the chart above.

Participant Limits

Participants in defined contribution plans are limited on how much can be allocated to their individual retirement accounts.
 

  • Profit Sharing Plans – For 2026, the maximum contribution that can be funded to a participant’s account is 100% of compensation up to $72,000.
  • 401(k) Plans – For 2026, a participant can defer 100% of compensation into a 401(k) plan up to $24,5002. Participants age 50 and above are eligible to contribute an additional $8,000, for a total of $32,500. Participants ages 60 – 63 can contribute a special catch-up limit of $11,250, for a total of $35,750. The total contribution for employee deferrals and employer contributions, including forfeitures, is 100% of compensation up to $72,000 ($80,0003 for participants age 50 and above and $83,250 for participants who turn age 60, 61, 62, or 63 in 2026).

Employer Limits

The maximum permissible federal income tax deduction for employer contributions funded to a plan is 25% of the aggregate compensation of the eligible participants. Employee salary deferrals are not subject to this limit and can be claimed as an additional tax deduction by the employer.

Please contact us at 720.387.8158 for more information.

1Catch-up contributions from employees aged 50+ making $150,000+ in FICA wages for the 2025 tax year will be required to be funded as Roth deferrals. The catch-up contribution limit is $8,000 for participants age 50 and above, or $11,250 for participants ages 60 – 63.
2Your company may impose more restrictive limitations. Please refer to the adoption Agreement for information specific to your plan.
3A participant must defer at least $8,000 in order to reach $80,000.

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