The IRS is boosting 401(k) contribution limits for 2026.
Starting next year, employees can contribute up to $24,500 into their 401(k) and 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees, the IRS announced Nov. 13. That’s a $1,000 jump from the $23,500 limit in 2025.
The catch-up contribution limit for employees ages 50 and older who participate in 401(k) and 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will rise to $8,000 from $7,500. Those aged 60 to 63 can instead save an extra $11,250, based on changes due to SECURE Act 2.0.
The limit on total employer-plus-employee contributions to defined contribution plans will increase to $72,000 in 2026, up from $70,000 in 2025.
The 2026 retirement limits announcement is just one of the biggest total rewards developments. Here's a look at other recent news in the compensation and benefits space.
Job Stress, Economic Concerns Spurring Employees to Skip PTO
Stressed about company culture, employer expectations, and a tough economic environment, employees are skipping their time away from work and hunkering down instead.
One in 4 employees didn't take a single day of paid time off (PTO) in the past year, according to a survey from FlexJobs, a flexible jobs site. That’s a big concern for both employees and employers, industry experts say.
How to Communicate Limited or No Pay Increases to Employees
Pay raises are not only a way to improve employees' financial wellness and help them keep up with the cost of living; they're a retention tool and a way to recognize people for their hard work. But due to economic concerns, a high pay raise — or even any pay raise at all — isn't always feasible for employers. That news may be disappointing to employees, so it’s best that company and HR leaders communicate these decisions thoughtfully and strategically.
Read the full step-by-step guide.
Employer-Sponsored Family Premiums Hit Nearly $27,000
Premiums for employer-sponsored family health coverage have hit nearly $27,000 a year, according to a new Kaiser Family Foundation (KFF) analysis — a new record that is setting off "a quiet alarm bell" for employers.
Annual premiums rose 6% over the past year to reach $26,993 in 2025, according to KFF's annual employer health benefits survey. On average, workers contributed $6,850 toward the cost of family coverage this year, with employers footing the rest of the bill. The average deductible among covered workers in a plan with a general annual deductible was $1,886 for single coverage.
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