2026 401K Limits

Question

Does someone know if Acumatica is planning something to handle the catch-up contributions for 2026? Standard contributions will be pre-tax, and catch-up will be taxable.

Thanks,

Andres

The 401(k) employee contribution limit for 2026 is $24,500, with catch-up contributions of $8,000 for ages 50–59 and $11,250 for ages 60–63.

Standard Contribution Limits

For 2026, the maximum employee deferral to a 401(k), 403(b), or 457(b) plan is $24,500, up from $23,500 in 2025 (IRS Notice 2025-67). This limit applies to the combined total of traditional pre-tax and Roth 401(k) contributions.

IRS+2

Catch-Up Contributions

Total Contribution Limits

The total contribution limit, including employee deferrals, employer matching, profit-sharing, and after-tax contributions, is $72,000 for 2026. For participants aged 50 and older, including catch-up contributions, the total can reach $80,000.

Fidelity Investments+2

Sonia Echols · Answer

Hi Andres,Thank you for raising this. It's a great question and one we're actively working on.You're correct that starting in 2026, catch-up contributions for employees aged 50+ who earned more than $150,000 in FICA wages in the prior year must be made as Roth (after-tax) contributions under SECURE 2.0. This does require differentiated tax treatment between standard and catch-up contributions.We did attempt to deliver a solution for this earlier, but ran into some complications along the way. The good news is that a Business Analyst is currently working on a solution, which is planned for delivery in an upcoming Tax Update. We'll share more details as that work progresses.We appreciate your patience and thank you for staying engaged on this topic!Sonia Echols

Standard Contribution Limits

Catch-Up Contributions

Total Contribution Limits

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