IRS Notice: 2026 Cost-of-Living Adjustments for Retirement Plans, IRAs (IRC §415)

The IRS has published a notice announcing the 2026 cost-of-living adjustments, which increase contribution limits and income thresholds for retirement plans and IRAs. Key increases include defined benefit plan annual benefit limits rising to $290,000 from $280,000, defined contribution plan limits increasing to $72,000 from $72,000, elective deferral limits for 401(k) plans and similar arrangements rising to $24,500 from $23,500, and IRA contribution limits increasing to $7,500 from $7,000. The notice also adjusts catch-up contribution limits, income phase-out ranges for IRA deductibility and Roth IRA contributions, as well as various other retirement-related compensation thresholds. These adjustments are required under I.R.C. ...