THE 2026 IRS COLA LIMITS.

The Internal Revenue Service announced that the amount individuals can contribute to their 401(k)s in 2026 has officially increased to $24,500 ($500 more than 2025).

 

The IRS has set the limits for the year. If you are looking to top your maximum savings off, these numbers will come in handy.

Contributions.

  • If you’ll have your 60th, 61st, 62nd, or 63rd birthday by the end of the year then you qualify for the Super Catch Up rather than the regular Catch Up. This Super Catch Up amount is the maximum you can contribute after meeting the maximum 401k Deferral limit for the year. *This is a Plan feature. Review your Plan rules to ensure your plan has included this new feature.

  • If you’ll have your 50th birthday by the end of the year then you can put more into your 401k than the 401k limit

  • The max you can deposit to your 401k as an employee

  • The sum total limit of the combined employee and employer contribution

Compensation.

  • Maximum eligible compensation

  • A Highly Compensated Employee is a tax term. The test looks if you make this amount or higher and if it puts you in the top 20% earners. If this employee is or has a family member who is more than 5% owner, they are also included as an HCE. This is part of the effort to prevent discrimination, so your contributions as an HCE have a cap and you could potentially have some of your contributions returned to you.

  • The taxable wage base is the income on which Social Security taxes must be paid. This amount often plays as a factor in testing. This annual limit has a few other names “contribution and benefit base,” “Social Security Wage Base,” and “taxable maximum.”

ESOP.

  • ESOP limit for determining the maximum account balance subject to the general five-year distribution period

  • Employee stock ownership plan (ESOP) limit for determining the lengthening of the general five-year distribution period

 
 

THE 2025 IRS COLA LIMITS.

The Internal Revenue Service announced that the amount individuals can contribute to their 401(k)s in 2025 has officially increased to $23,500 ($500 more than 2024).

 

The IRS has set the limits for the year. If you are looking to top your maximum savings off, these numbers will come in handy.

Contributions.

  • If you’ll have your 60th, 61st, 62nd, or 63rd birthday by the end of the year then you qualify for the Super Catch Up rather than the regular Catch Up. This Super Catch Up amount is the maximum you can contribute after meeting the maximum 401k Deferral limit for the year. *This is a Plan feature. Review your Plan rules to ensure your plan has included this new feature.

  • If you’ll have your 50th birthday by the end of the year then you can put more into your 401k than the 401k limit

  • The max you can deposit to your 401k as an employee

  • The sum total limit of the combined employee and employer contribution

Compensation.

  • Maximum eligible compensation

  • A Highly Compensated Employee is a tax term. The test looks if you make this amount or higher and if it puts you in the top 20% earners. If this employee is or has a family member who is more than 5% owner, they are also included as an HCE. This is part of the effort to prevent discrimination, so your contributions as an HCE have a cap and you could potentially have some of your contributions returned to you.

  • The taxable wage base is the income on which Social Security taxes must be paid. This amount often plays as a factor in testing. This annual limit has a few other names “contribution and benefit base,” “Social Security Wage Base,” and “taxable maximum.”

ESOP.

  • ESOP limit for determining the maximum account balance subject to the general five-year distribution period

  • Employee stock ownership plan (ESOP) limit for determining the lengthening of the general five-year distribution period

 
 

THE 2024 IRS COLA LIMITS.

The Internal Revenue Service announced that the amount individuals can contribute to their 401(k)s in 2024 has officially increased to $23,000 ($500 more than 2023).

 

The IRS has set the limits for the year. If you are looking to top your maximum savings off, these numbers will come in handy.

Contributions.

  • If you’ll have your 50th birthday by the end of the year then you can put more into your 401k than the 401k limit

  • The max you can deposit to your 401k as an employee

  • The sum total limit of the combined employee and employer contribution

Compensation.

  • Maximum eligible compensation

  • A Highly Compensated Employee is a tax term. The test looks if you make this amount or higher and if it puts you in the top 20% earners. If this employee is or has a family member who is more than 5% owner, they are also included as an HCE. This is part of the effort to prevent discrimination, so your contributions as an HCE have a cap and you could potentially have some of your contributions returned to you.

  • The taxable wage base is the income on which Social Security taxes must be paid. This amount often plays as a factor in testing. This annual limit has a few other names “contribution and benefit base,” “Social Security Wage Base,” and “taxable maximum.”

ESOP.

 
 

THE 2023 IRS COLA LIMITS.

The Internal Revenue Service announced that the amount individuals can contribute to their 401(k)s in 2023 has officially increased to $22,500 ($2,000 more than 2022).

 

The IRS has set the limits for the year. If you are looking to top your maximum savings off, these numbers will come in handy.

Contributions.

  • If you’ll have your 50th birthday by the end of the year then you can put more into your 401k than the 401k limit

  • The max you can deposit to your 401k as an employee

  • The sum total limit of the combined employee and employer contribution

Compensation.

  • Maximum eligible compensation

  • A Highly Compensated Employee is a tax term. The test looks if you make this amount or higher and if it puts you in the top 20% earners. If this employee is or has a family member who is more than 5% owner, they are also included as an HCE. This is part of the effort to prevent discrimination, so your contributions as an HCE have a cap and you could potentially have some of your contributions returned to you.

  • The taxable wage base is the income on which Social Security taxes must be paid. This amount often plays as a factor in testing. This annual limit has a few other names “contribution and benefit base,” “Social Security Wage Base,” and “taxable maximum.”

ESOP.

 
 

THE 2022 IRS COLA LIMITS.

The Internal Revenue Service announced that the amount individuals can contribute to their 401(k)s in 2022 has officially increased to $20,500 ($1,000 more than 2021).

 

The IRS has set the limits for the year. If you are looking to top your maximum savings off, these numbers will come in handy.

Contributions.

  • If you’ll have your 50th birthday by the end of the year then you can put more into your 401k than the 401k limit

  • The max you can deposit to your 401k as an employee

  • The sum total limit of the combined employee and employer contribution

Compensation.

  • Maximum eligible compensation

  • A Highly Compensated Employee is a tax term. The test looks if you make this amount or higher and if it puts you in the top 20% earners. If this employee is or has a family member who is more than 5% owner, they are also included as an HCE. This is part of the effort to prevent discrimination, so your contributions as an HCE have a cap and you could potentially have some of your contributions returned to you.

  • The taxable wage base is the income on which Social Security taxes must be paid. This amount often plays as a factor in testing. This annual limit has a few other names “contribution and benefit base,” “Social Security Wage Base,” and “taxable maximum.”

ESOP.