In working with your qualified plan, the plan, plan sponsor, and participants will be subject to various pension limits as prescribed by the Internal Revenue Code.
Section 415 of the Internal Revenue Code provides for dollar limits on the benefits and the contributions for qualified retirement plans.
The 2026 pension limits as set by the Internal Revenue Service can be found below.
2026 Pension Limits
Bold numbers indicate a change from 2025.
|
2026 |
2025 |
2024 |
|
| Maximum Annual Pension Benefit |
$290,000 |
$280,000 |
$275,000 |
| Maximum Annual Addition |
$72,000 |
$70,000 |
$69,000 |
| Maximum Elective Deferral |
$24,500 |
$23,500 |
$23,000 |
| Catch-up Contribution-401(k), 403(b) |
$8,000 (Age 60-63 $11,250) |
$7,500 (Age 60-63 $11,250) |
$7,500 |
| Qualified Plan Compensation Limit |
$360,000 |
$350,000 |
$345,000 |
| Highly Compensated Employee | $160,000
(No Change) |
$160,000 |
$155,000 |
|
Highly Paid Individual Compensation – Roth Catch-up
(New! Learn More) |
TBD |
$150,000 |
— |
| Key Employee Compensation | $235,000 |
$230,000 |
$220,000 |
| SIMPLE Maximum Contribution (+ Catch-up) | $17,000 (+$4,000) |
$16,500 (+$3,500) |
$16,000 (+$3,500) |
Note that the maximum annual addition limit applies to defined contribution plans, such as 401(k)/profit sharing plans. 401(k) elective deferrals are in fact applied to this annual addition limit.