IRS Announces 2026 Retirement Plan Limits + Catch Up Rule Change for Highly Comped Individuals
The contribution limits for employees who participate in the voluntary 403(b) and/or 457(b) plans have increased from $23,500 to $24,500 in 2026, and the catch-up contribution limit for employees aged 50 and over who participate in these plans increased from $7,500 to $8,000. Under a change made to the SECURE 2.0 Act, a higher catch-up contribution limit applies for employees ages 60, 61, 62, and 63 who participate in these plans. This catch-up, called the Super Catch Up, allows a catch-up amount of as much as $11,250.
This means if you are
- under age 50 in 2026, the maximum amount you may contribute into your voluntary retirement plan is $24,500.
- age 50 or above, the maximum amount you may contribute is $32,500 ($24,500 plus $8,000 catch-up).
- age 60-63, the maximum amount you may contribute is $35,750 ($24,500 plus $11,250).
A significant change made under Secure 2.0 is that in 2026, all catch-up dollars being contributed by employees who earned more than $150,000 in FICA wages in 2025, will be designated as after-tax ROTH contributions. The pre-tax incentive no longer exists for catch-ups of highly compensated individuals. NMU’s TIAA portal has the ability to automatically designate catch-up funds to Roth for impacted individuals. No additional action is needed on your part.
Employees interested in adjusting their retirement contribution amount should log in to their TIAA portal, where adjustments can be made at any time. The portal can be accessed at: http://tiaa.org/nmu/.