The Internal Revenue Service (IRS) released the 2026 cost-of-living adjustments (COLA) for retirement plans on November 13, 2025, under Notice 2025‑67. As we welcome in the New Year, these updates reflect multiple increases to key limits previously applicable in 2025.
Margie Brown, Principal Consultant
A notable surprise in the 2026 COLA updates is the increase in the FICA wage threshold from $145,000 to $150,000 when determining if catch-up contributions are required to be made on a Roth basis. Under the 2026 rules, individuals will be subject to the Roth catch-up mandate if their 2025 FICA wages exceeded $150,000.
Due to the timing of this announcement, recordkeepers, plan sponsors, and employers should thoroughly review processes, update systems as necessary, and revise employee communications accordingly.
Below are several key updates to important limits that will be frequently referenced in 2026.
At Enterprise Iron, our Retirement Plan Compliance Services (“RPCS”) Team is committed to navigating the complexities of retirement plan administration, providing tailoring support to your needs, and managing the heavy lifting so you can stay focused on growing your business.
Email compliance@enterpriseiron.com today to get started.
The materials contained herein is general and prepared for informational purposes only and shall not be construed as constituting legal or tax advice. Tax laws and regulations are complex, and some content is subject to interpretation of the law and subject to change as further regulatory guidance is published. Please consult your own independent attorney or tax professional regarding your specific situation.