The updated IRS Limits for 2026 401(k) Contributions are here! Please see below for both 2025 and 2026 limits, along with a few important reminders about Required Minimum Distributions (RMDs).
2026 IRS Limits for 401(k) Contributions
$24,500 Salary Deferral Contribution
Up from $23,500 in 2025
Applies to 401(k), 403(b), most 457 plans, and the Thrift Savings Plan
$8,00 Catch-Up Contribution limit for those over age 50
Up from $7,500 in 2025
An additional amount that individuals age 50 and older can contribute
$11,250 Super Catch-Up Contribution limit for those ages 60-63
This value did not change from 2025
This “Super” Catch-Up limit is a higher catch-up limit applies to participants ages 60, 61, 62, and 63, as provisioned by the SECURE 2.0 Act.
What is an RMD?
Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan participant must withdraw annually, starting with the year that he or she reaches age 73 or, if later, the year in which he or she retires. However, if the participant is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the participant is age 73, regardless of retirement.
Note: RMDs are not required from designated Roth accounts.
Can I delay my RMD?
The first payment can be delayed until April 1st following the year in which you turn 73, or if older, the year you retire. For all subsequent years, including the year in which you were paid the first RMD by April 1st, you must take the RMD by December 31st.
Example: If you work until you’re 76 years old, you can delay all of your RMDs (as long as you are not an owner of the company sponsoring the plan) until your retirement. If you retire at 68 and leave your account balance in a 401(k) plan, you must start taking distributions at 73.
Important Consideration for Retirees in 2025
If a participant is age 73 or older and retires ON December 31st, 2025, they will be required to take the first RMD by April 1st, 2026 and again by December 31st, 2026.
However, if the participant retires on January 1st, 2026 (delaying retirement by just 1 day) they will only need to take one RMD distribution for 2026.
Retirement Plan Sponsors / Committee Members, please remind your participants about the RMD rules
You can call 401k Plan Professionals – or encourage your participants to do so - at (952) 835-4485 for any questions or assistance with RMDs. If you prefer email, please use the contact button below or send an email to gina@401kplanprofessionals.com for questions and help.