IRS Benefits & Contributions Limits and Social Security Wage Base for 2026
(Posted on November 13, 2025 by )


The IRS has now issued Notice 2025-67, setting forth section 415 and several other IRS limits for 2026. Maximum employee deferrals under a 401(k) plan went up from $23,500 to $24,500. Catch-ups for those over 50 went up from $7,500 to $8,000, while catch-ups for those ages 60-63 stayed the same at $11,250. However (new for this year), catch-ups for those with previous year’s Social Security wages of at least $150,000 must be made as Roth contributions.

The Social Security Administration had already issued a news release indicating that the Social Security wage base will rise from $176,100 to $184,500 for 2026.

A chart showing details, and limits from 1996 to 2026, can be found at this link.

New chart: Pre-approved Plan Eligibility Checklist
(Posted on December 27, 2023 by )


The IRS maintains pre-approved plan programs (1) for retirement plans described in I.R.C. § 401(a) (qualified plans), and (2) for annuity contracts or custodial accounts described in I.R.C. § 403(b) (403(b) plans). A new chart shows what types of plans are and are not eligible to use the pre-approved plan program.

Read more.

New article: Executive Compensation Arrangements for Tax-Exempt Organizations
(Posted on December 6, 2023 by )


Tax-exempt organizations face special legal challenges in developing compensation packages for their executives. A new article, Executive Compensation Arrangements for Tax-Exempt Organizations, published in the Lexis Practice Advisor provides practical guidance on developing benefits for executives of nonprofits.

This article is divided into the following main topics:

  • Executive compensation considerations for tax-exempt entities
  • Excise Tax on Excess Executive Compensation
  • Deferred compensation rules
  • Severance pay
  • Vacation and sick leave plans
  • Performance bonuses and other nonfixed payments
  • Fringe benefits

Read more.

New article: 403(b) Plan Design and Compliance
(Posted on December 6, 2023 by )


A new article, Section 403(b) Plan Design and Compliance, discusses the rules that apply when eligible tax-exempt organizations establish tax-sheltered annuities, custodial accounts, or retirement income accounts, as described in Section 403(b) of the Internal Revenue Code (403(b) plans).

This article addresses the following topics:

  • 403(b) Plan Overview
  • Eligible Employers and Employee>
  • ERISA Coverage of 403(b) Plans
  • Qualification Requirements
  • 403(b) Plan Contributions
  • 403(b) Plan Distributions
  • Implementation and Operation
  • Correcting 403(b) Plan Errors
  • Terminating 403(b) Plans
  • EP Subcommittee Report: 403(b) Plan Issues and Recommendations
  • Advantages and Disadvantages of 403(b) Plans

Read more.

New Article: Pre-Approved 403(b) Plans
(Posted on December 6, 2023 by )


On November 21, 2023, the IRS issued Rev. Proc. 2023-37, substantially updating its guidance on preapproved retirement programs described in Internal Revenue Code (I.R.C.) § 403(b) (403(b) plans). A new article, Pre-Approved 403(b) Plans, discusses preapproved 403(b) plans, including their advantages, legal pitfalls, and other issues that an eligible employer may consider when determining whether to convert its existing 403(b) plan into a preapproved plan.

The major topics are:

  • What Is a 403(b) Plan?
  • What Are the Advantages of a Preapproved 403(b) Plan?
  • What Are the Legal Pitfalls of a Preapproved 403(b) Plan?
  • What Operational Issues Can Arise for a Preapproved Plan?
  • What Practical Issues Can Arise for a Preapproved Plan?
  • When Should an Employer Adopt a Preapproved 403(b) Plan?
  • Can the Employer Cure Past Plan Issues by Adopting a Preapproved 403(b) Plan?
  • What Should an Employer Do If It Did Not Comply with the Written Plan Document Requirement in the Past?

Read more.

New article: Pre-approved Plan Design and Compliance
(Posted on December 5, 2023 by )


With the IRS cutting back on determination letters for individually designed plans, more and more employers are switching to pre-approved plans. An article recently published in the Lexis Practice Advisor, Pre-Approved Plan Design and Compliance, discusses practical considerations involved with such plans. Topics include:

  • Pre-approved Plan Designs and Favored Regulatory Status
  • General Advantages and Disadvantages of Pre-approved Plans
  • Types and Requirements of Pre-Approved Plans
  • Limitations on Plans That May Be Pre-approved
  • Pre-approved Plan Providers
  • Implementing Pre-Approved Plans
  • Obtaining IRS Opinion Letters

Read more.

New Article: Substantial Risk of Forfeiture Under the IRC
(Posted on December 4, 2023 by )


An article recently published in the Lexis Practice Advisor, Substantial Risk of Forfeiture Under the IRC, discusses the concept of substantial risk of forfeiture (SRF) under sections 83, 409A, 457(f), 457A, and 3121(v)(2) of the Internal Revenue Code and the different consequences of the failure to achieve a SRF under each such section.

Topics covered are:

  • Significance of SRF under the Various I.R.C. Sections
  • Definition of SRF
  • Conditions that Generally Support the Existence of a SRF and Related Requirements
  • Conditions that Generally Do Not Support the Existence of a SRF
  • Other rules relating to SRF

It is accompanied by a Substantial Risk of Forfeiture Comparison Chart, which summarizes the rules.