The IRS and Social Security Administration have announced the 2026 cost-of-living adjustments for retirement plans.

Here are some of the more significant limitations affecting employee benefit plans:

• The maximum amount that may be deferred under 401(k), 403(b) and 457(b) plans, not including catch-up deferrals, under Internal Revenue Code Section 402(g) limit, is increased from $23,500 to $24,500. 
• The IRC Section 415 maximum annual benefit under a defined benefit plan is increased by $10,000 to $290,000.
• The IRC Section 415 maximum annual additions under a defined contribution plan will be increased by $2,000 to $72,000, subject to the overall limitation of 100% of compensation.
• The highly compensated employee threshold dollar limit remains unchanged $160,000.
• The maximum amount of compensation that may be considered for benefit purposes under a qualified plan will be increased from the current limit of $350,000 to $360,000.
• The catch-up deferrals to 401(k), 403(b) and 457 plans for employees ages 60-63 remain unchanged at $11,500. The limit for all other plan participants who turn 50 at any time during the plan year and, who may no longer make deferrals because of plan or regulatory limitations, increases from $7,500 to $8,000.
• The Social Security taxable wage base is increased by $8,400 to $184,500, which is a 2.8% increase over the prior year.

If you have questions about any of these adjustments, please contact attorney Mark Smith or any member of the Barley Snyder Employee Benefits Group.