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Question

2026 401K Limits

  • April 30, 2026
  • 4 replies
  • 92 views
A
Freshman II

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

4 replies

Sonia Echols
Acumatica Moderator
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  • Sonia Echols
  • Acumatica Moderator
  • April 30, 2026

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

Best,
    A
    Freshman II
    • andres28
    • Author
    • Freshman II
    • June 12, 2026

    Hi Sonia,

     

    First of all. thank you for your earlier reply on this matter.

    I wanted to ask you if there a way to track the status of the solution and a possible estimated delivery date.

    Thank you very much.

     

    Best regards,

     

     

    Andres

     

     

      mblassingame35
      Pro III
      Forum|alt.badge.img+4

      Can we get an update of when this Tax Update is expected to happen?

       

      Melissa Blassingame
      A
      Freshman II
      • andres28
      • Author
      • Freshman II
      • July 30, 2026

      The good news is that Acumatica released the solution on a tax update late June. I was told that the solution was released for 2026R1; but we have tested on 2024R2 and it was there as well. 
       

      It worked perfectly for the employee side. For the employer side, the system continues calculating the employeer contribution; question here if once the employee max out both, pre-tax and taxable, contributions, employer contribution should stop at the same time even when the employer contribution has not been max out. 
       

      Client is checking with their tax accountant on that open question, but everything else is working fine. 
       

       

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