Regulations Governing Contribution Limits to Qualified Retirement Plans

Under IRC §415, the IRS mandates annual Cost of Living Adjustment (COLA) to retirement plan contribution limits, calculated under procedures linked to the section 215(i)(2)(A) of the Social Security Act.

The statutory limits for tax year 2026 are:

Section 415(c) Defined Contribution Limit

The absolute limit on annual additions (employee deferrals, employer matches, and after-tax contributions) to a single plan is $72,000 under IRC §415(c)(1)(A).

Section 402(g) Elective Deferrals

The limit on employee elective deferrals to 401(k), 403(b), and TSP plans is $24,500 under IRC §402(g)(1).

Catch-Up Contributions

The catch-up limit under IRC §414(v)(2)(B)(i) is $8,000 for participants age 50 or older, permitting a total deferral of $32,500. Under SECURE 2.0, a higher “super catch-up” limit of $11,250 applies to participants aged 60 through 63. Plan sponsors are not required to offer the super catch-up, though under IRS rules, if any plan in a controlled group offers it, all plans in the group must do so under universal availability regulations. Under 403(b) plans, the special 15-year catch-up of up to $3,000 annually under IRC §402(g)(7) survived SECURE 2.0 and stacks on top of the age-based catch-up — but it is narrower than it looks. It requires 15 years of service with the same employer, it is available only if your prior contributions averaged under $5,000 a year, and it is capped at $15,000 over your lifetime. Ordering is not optional either: deferrals above the standard limit are applied to the 15-year catch-up first, and only then to the age-50 or super catch-up.

Mandatory Roth Catch-Up for High Earners

Beginning in 2026, the SECURE 2.0 mandate under IRC §414(v)(7) takes effect: if your prior-year FICA wages from that employer exceeded $150,000, every catch-up dollar must be made as a Roth contribution. The pre-tax catch-up is gone for high earners—it is Roth or nothing. The threshold is measured per employer on the preceding year’s Social Security wages, so a mid-year job change can reset it. This is a deferral-into-taxable-income event you no longer control, so budget for the added tax on those $8,000 (or $11,250) of catch-up dollars.

Maximum Compensated Base

The maximum annual employee compensation considered for contribution calculations is $360,000 under IRC §401(a)(17).

Highly Compensated Employee (HCE) Threshold

An employee is classified as highly compensated if their compensation exceeds $160,000 under IRC §414(q)(1)(B).

Top-Heavy Plan Definition

Under IRC §416(i)(1)(A)(i), a plan is top-heavy if “key employees” hold more than 60% of total plan assets. Top-heavy plans must provide a minimum 3% employer non-elective contribution to all non-key employees.

Individual Retirement Accounts (IRAs)

The contribution limit under IRC §219(b)(5)(A) is $7,500, with an $1,100 catch-up contribution for age 50 or older.

SIMPLE IRA Limits

The elective deferral limit is $17,000 under IRC §408(p)(2)(E). For certain applicable SIMPLE accounts (small or electing higher limits under SECURE 2.0), this limit rises to $18,100. The catch-up limit for age 50 or older is $4,000 (remaining $3,850 for certain electing plans), and the super catch-up limit for ages 60 through 63 is $5,250.