Retirement & Cafeteria Limits for 2026

Below are the updated regulations regarding the limits for 2026. These limits are reviewed  annually and adjusted as needed to keep pace with inflation. 

Retirement

Annual Compensation Limit: $360,000        
Total Defined Contribution Plan Limit: $72,000        

401(k)/Roth Employee Deferral Limit: $24,500        
401(K)/Roth Catch-up Contribution Limit (age 50-59 and 64+): $8,000            
401(K)/Roth Catch-up Contribution Limit (age 60-63): $11,250    
Roth catch-up wage threshold (*see note below): $150,000

SIMPLE 401(k)/IRA Employee Deferral Limit: $17,000        
SIMPLE Catch-up Contribution Limit (age 50-59 and 64+): $4,000            
SIMPLE Catch-up Contribution Limit (age 60-63): $5,250            

IRA (Traditional and Roth) Contribution Limit: $7,500            
Catch-up Contribution Limit: $1,100            

SEP IRA Minimum Compensation: $800                
SEP IRA Maximum Compensation: $360,000        
SEP IRA Maximum Contribution: $72,000        

Cafeteria

Health FSA Contribution Limit: $3,400            
Health FSA Carryover Limit (20% of contribution limit): $680                 
Dependent Care FSA Max Election: $7,500            

HSA Max Contribution Limit - Individual: $4,400            
HSA Max Contribution Limit - Family: $8,750            
HSA Catch-Up Contribution Limit (age 55+): $1,000            

Social Security

Social Security benefits and SSI payments: 2.8% raise        

Social Security Taxable Wage Base: $184,500    

At or above the wage base, the employee and the employer each will pay $11,439.00 in tax. That’s an increase of $520.80 for each party in 2026.
    

*Additional Change Starting in 2026

If your wages were $150,000 or higher in 2025, then your 2026 catch-up contributions must be Roth contributions. This means your contributions won’t be tax-deductible, but your withdrawals of these contributions in retirement will be tax-free. The new rule does not apply to SEP or SIMPLE IRA plans.