Dated references · 2026
Selected federal planning figures for 2026. A published maximum is not necessarily an amount you can contribute, deduct or transfer without reporting.
Content reviewed: October 20, 2026 · General education
| Reference | 2026 amount | Who or what it applies to | Context & official source |
|---|---|---|---|
| 401(k) employee deferral | $24,500 | Participants in traditional or safe harbor 401(k) plans | Employee contributions only. Plan terms, compensation and testing can reduce the available amount; deferrals generally aggregate across plans. IRS — 401(k) and profit-sharing contribution limits |
| 401(k) ordinary catch-up | $8,000 | Eligible participants age 50 or older by year end | Additional employee deferrals where available. The special ages 60–63 limit replaces this amount. IRS — Catch-up contributions |
| 401(k) enhanced catch-up | $11,250 | Eligible participants turning 60, 61, 62 or 63 during 2026 | Replaces the ordinary catch-up; the two amounts are not added together. Confirm availability with the plan administrator. IRS — Catch-up contributions |
| Defined contribution annual additions | $72,000 | Participants in applicable defined contribution plans | Combined employer and employee limit, excluding eligible catch-ups. Also limited to 100% of compensation. Related-employer rules apply; SIMPLE plans have different limits. IRS — 401(k) and profit-sharing contribution limits |
| Annual compensation cap | $360,000 | Compensation recognized for applicable plan contribution calculations | A calculation cap, not a contribution allowance or a restriction on actual pay. IRS — 401(k) and profit-sharing contribution limits |
| IRA contribution | $7,500 | Combined regular contributions to a person's traditional and Roth IRAs | Generally limited to taxable compensation, with spousal IRA rules available. Roth eligibility and traditional IRA deductibility have separate income rules. IRS — IRA contribution limits |
| IRA catch-up | $1,100 | Eligible IRA contributors age 50 or older | Raises the combined regular IRA ceiling to $8,600, subject to compensation and eligibility rules. IRS — IRA contribution limits |
| Social Security taxable maximum | $184,500 | Earnings subject to the Social Security portion of payroll tax | This is not the Medicare wage limit. Medicare has no comparable maximum taxable earnings cap. Social Security Administration — Contribution and benefit base |
| Federal annual gift exclusion | $19,000 | Per donor, per recipient, for qualifying gifts | Not a ceiling on permitted gifts. Larger or otherwise reportable gifts can require Form 709 even when no current gift tax is owed. IRS — Frequently asked questions on gift taxes |
| Federal estate and gift basic exclusion | $15,000,000 | Per individual under the applicable U.S. citizen or resident rules | Lifetime taxable gifts affect the amount remaining at death. A surviving spouse's use of an unused exclusion requires an applicable portability election. State rules may differ. IRS — Frequently asked questions on estate taxes |
| Roth catch-up wage threshold | More than $150,000 | Prior-year wages from the plan sponsor used to determine 2026 treatment | For affected participants, 2026 catch-ups must be Roth contributions. The prior-year wage test and plan-specific rules need administrator review. IRS — Catch-up contributions |
All figures on this page apply to 2026. They are selected federal planning references, not personalized contribution or tax calculations.
A published maximum is not necessarily an amount you can contribute, deduct or transfer without filing a return. Eligibility, compensation, employer relationships, plan documents and prior transactions matter.
Ask the relevant plan administrator or tax professional to confirm how a figure applies before acting. The linked government sources provide the controlling context.
This page is dated for 2026. It does not provide 2027 limits or automatic updates. Confirm the applicable year at the linked official source.
A company retirement plan is both an employee benefit and part of the owner's personal wealth plan. Choosing one means comparing contribution opportunities with employee costs, cash-flow commitments and administration. Start with the people and business you have today, then consider how hiring, profits and ownership may change.
Owner pay connects two budgets: the company that needs working capital and the household that needs dependable income. A useful policy starts with the work you perform, the business structure and the cash the company can support. It then gives taxes, personal saving and irregular distributions a place in the same conversation.
An owner's estate plan needs to explain more than who inherits. It should connect the people who can act, the business interests that may transfer, the cash needed during a transition and the family's expectations. Legal documents, ownership agreements and account records need to tell a compatible story.
Content reviewed: October 20, 2026 · General education
Educational information only, not personal financial, tax, legal or insurance advice.
