Maximum Benefits and Contributions Limits - Employee Benefits Legal Resource SiteEmployee Benefits Legal Resource Site

Carol V. Calhoun

The author of this site has now retired. The contents of this site are maintained for archival purposes only, and may not be up to date.

Type of Limitation	2026	2025	2024	2023	2022	2021
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)	$24,500	$23,500	$23,000	$22,500	$20,500	$19,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups)	$24,500	$23,500	$23,000	$22,500	$20,500	$19,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Over Age 50	$8,000	$7,500	$7,500	$7,500	$6,500	$6,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Ages 60-63	$11,250	$11,250	NA	NA	NA	NA
Social Security wages requiring Roth to be used for catch-up	$150,000	NA	NA	NA	NA	NA
Defined Benefit Plans	$290,000	$280,000	$275,000	$265,000	$245,000	$230,000
Defined Contribution Plans (annual additions limit)	$72,000	$70,000	$69,000	$66,000	$61,000	$58,000
Annual Compensation Limit	$360,000	$350,000	$345,000	$330,000	$305,000	$290,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993	$535,000	$520,000	$505,000	$490,000	$450,000	$430,000
Highly Compensated Employee (“HCEs”)	$160,000	$160,000	$155,000	$150,000	$135,000	$130,000
Key Employee/Officer	$235,000	$230,000	$220,000	$215,000	$200,000	$185,000
Individual Retirement Accounts (“IRAs”), for individuals 49 and below	$7,500	$7,000	$7,000	$6,500	$6,000	$6,000
Individual Retirement Accounts (“IRAs”), for individuals 50 and above	$8,600	$8,000	$8,000	$7,500	$7,000	$7,000
SIMPLE Retirement Accounts	$17,000	$16,500	$16,000	$15,500	$14,000	$13,500
SEP Coverage	$800	$750	$750	$750	$650	$650
SEP Compensation	$360,000	$350,000	$345,000	$330,000	$305,000	$290,000
Tax Credit ESOP Maximum Balance	$1,455,000	$1,415,000	$1,380,000	$1,330,000	$1,230,000	$1,165,000
Amount for Lengthening of 5-Year ESOP Period	$290,000	$280,000	$275,000	$265,000	$245,000	$230,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases	$210,000	$210,000	$200,000	$155,000	$145,000	$135,000
Income Subject to Social Security Tax	$184,500	$176,100	$168,600	$160,200	$147,000	$142,800
FICA Tax for employers	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%
FICA Tax for employees	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%
Social Security Tax for employers	6.20%	6.20%	6.20%	6.20%	6.20%	6.20%
Social Security Tax for employees	6.20%	6.20%	6.20%	6.20%	6.20%	6.20%
Medicare Tax for employees and employers	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%
SECA Tax for self-employed workers	15.30%	15.30%	15.30%	15.30%	15.30%	15.30%
Social Security Tax for self-employed workers	12.40%	12.40%	12.40%	12.40%	12.40%	12.40%
Medicare Tax for self-employed workers	2.90%	2.90%	2.90%	2.90%	2.90%	2.90%

Footnotes:

1. 2026 limits reflect issuance of IRS Notice 2025-67 (November 13, 2025), and the corresponding Social Security Administration News Release (October 24, 2025).

2. 2025 limits reflect issuance of IRS Notice 2024-80, 2024-47 I.R.B. 1120 (November 18, 2024), and the corresponding Social Security Administration News Release (October 10, 2024).

3. 2024 limits reflect issuance of IRS Notice 2023-75, 2023-47 I.R.B. 1256 (November 20, 2023) and the corresponding Social Security Administration News Release (October 12, 2023).

4. 2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (November 7, 2022) and the corresponding Social Security Administration News Release (October 13, 2022).

5. 2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (November 22, 2021) and the corresponding Social Security Administration News Release (October 13, 2021).

6. 2021 limits reflect issuance of IRS Notice 2020-79, 2020–46 I.R.B. 1014 (November 9, 2020) and the corresponding Social Security Administration News Release (October 13, 2020).

7. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.

8. This additional catch-up only became effective in 2025.

9. The requirement that catch-ups be made as Roth if Social Security wages were above a certain limit only became effective in 2026.

10. Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.

2026 limits reflect issuance of IRS Notice 2025-67 (November 13, 2025), and the corresponding Social Security Administration News Release (October 24, 2025).

2025 limits reflect issuance of IRS Notice 2024-80, 2024-47 I.R.B. 1120 (November 18, 2024), and the corresponding Social Security Administration News Release (October 10, 2024).

2024 limits reflect issuance of IRS Notice 2023-75, 2023-47 I.R.B. 1256 (November 20, 2023) and the corresponding Social Security Administration News Release (October 12, 2023).

2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (November 7, 2022) and the corresponding Social Security Administration News Release (October 13, 2022).

2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (November 22, 2021) and the corresponding Social Security Administration News Release (October 13, 2021).

2021 limits reflect issuance of IRS Notice 2020-79, 2020–46 I.R.B. 1014 (November 9, 2020) and the corresponding Social Security Administration News Release (October 13, 2020).

This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.

This additional catch-up only became effective in 2025.

The requirement that catch-ups be made as Roth if Social Security wages were above a certain limit only became effective in 2026.

Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.