Retirement plan changes to watch in 2026.

More changes are on the way in 2026 as key 401(k) and other contribution limits are set to rise. These changes create new savings opportunities for employees, but they also add to the compliance responsibilities for plan sponsors.

Last month we shared a post focused specifically on the IRS’s final Roth catch-up regulations. While that rule remains a major compliance priority, these latest 2026 updates go beyond catch-ups. So, we want to also share the latest so employers and employees are prepared.

So, what’s the deal with contribution limits?

Well, they are rising. The IRS has increased retirement plan limits for 2026. Here’s the details:

401(k), 403(b) & 457 employee deferrals: go up to $24,500 (an increase of $1,000)
401(k), 403(b) & 457 catch up for age-50+: rise to $8,000 (an increase of $500)
Total employer + employee contributions: up to $72,000 (an increase of $2,000)
IRA contribution limit: up to $7,500 (an increase of $50); plus, additional IRA catch-up (age 50+): up to $1,100 (an increase of $100)
Simple IRA contribution limit: up to $17,000 (an increase of $500); plus, additional catch up (age 50+): up to $4,000 (an increase of $500)

The goal is of course to allow employees the ability to build more long-term savings and keep up with inflation, especially older workers making a final push before retirement.

There’s only a small percentage of 401(k) holders that even max out employee deferrals each year. They tend to be high earners who may have an easier time putting more dollars into savings. But making the rules around contributions clearer cut could help more employees get closer to their savings goals.

How about the Roth catch-up requirements for high earners?

A major SECURE 2.0 change also takes effect in 2026. That’s the high earners’ mandatory catch up. Employees aged 50+ who earned more than roughly $150,000 the previous year must make Roth (after-tax) catch-up contributions.

Technically, it means paying more tax now vs later. If a plan doesn’t offer a Roth option, those employees won’t be able to make catch-up contributions at all. Plans should access any risk they carry.

There are some simple ways to prepare for these changes.

Most importantly, stay compliant and support employees. Clear and better education around retirement savings can make a big difference for everyone.

Confirm the company’s plan offers Roth contributions
Coordinate with payroll and recordkeepers to set up 2026 limits
Communicate upcoming changes to employees, especially high earners
Review plan documents and amendments ahead of the 2026 deadline

These updates increase retirement readiness for employees, particularly those nearing retirement age. For employers, they’re an opportunity to strengthen benefits packages while ensuring your plan stays compliant and continues to operate in everyone’s best interest.