The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
|
2027 |
2026 |
2025 |
|
| IRAs | |||
| IRA Contribution Limit |
$7,500 |
$7,500 |
$7,000 |
| IRA Catch-Up Contributions |
$1,100 |
$1,100 |
$1,000 |
| IRA AGI Deduction Phase-out Starting | |||
| Joint Return |
$133,000 |
$129,000 |
$126,000 |
| Single or Head of Household |
$83,000 |
$80,500 |
$79,000 |
| SEP | |||
| SEP Minimum Compensation |
$800 |
$800 |
$750 |
| SEP Maximum Contribution |
$75,000 |
$72,000 |
$70,000 |
| SEP Maximum Compensation |
$375,000 |
$360,000 |
$350,000 |
| SIMPLE Plans | |||
| SIMPLE Maximum Contributions |
$17,500 |
$17,000 |
$16,500 |
| Catch-up Contributions |
$4,000 |
$4,000 |
$3,500 |
| Catch-up Contributions (Ages 60-63) |
$5,250 |
$5,250 |
$5,250 |
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
| Annual Compensation |
$375,000 |
$360,000 |
$350,000 |
| Elective Deferrals |
$25,500 |
$24,500 |
$23,500 |
| Catch-up Contributions |
$8,500 |
$8,000 |
$7,500 |
| Catch-up Contributions (Ages 60-63) |
$11,750 |
$11,250 |
$11,250 |
| Defined Contribution Limits |
$75,000 |
$72,000 |
$70,000 |
| ESOP Limits |
$1,505,000 $300,000 |
$1,455,000
$290,000 |
$1,415,000 $280,000 |
| Other | |||
| HCE Threshold |
$170,000 |
$160,000 |
$160,000 |
| Defined Benefit Limits |
$300,000 |
$290,000 |
$285,000 |
| Key Employee |
$245,000 |
$235,000 |
$230,000 |
| 457 Elective Deferrals |
$25,500 |
$24,500 |
$23,500 |
| Control Employee (board member or officer) |
$150,000 |
$145,000 |
$140,000 |
| Control Employee (compensation-based) |
$300,000 |
$290,000 |
$285,000 |
| Taxable Wage Base |
$192,300 |
$184,500 |
$176,100 |