November 2025
1. The QCD limit for 2026 is increased to $111,000. It is $108,000 for 2025.
2. The QCD special rule for a one-time election because the QCD is made to a split-interest entity is increased in 2026 to $55,000 from $54,000.
3. The maximum limit for an Employer’s Nonelective Contribution to a SIMPLE-IRA participant for 2026 is $5,300. It is $5,100 for 2025. It was $5,000 for 2024.
4. Domestic abuse victims who withdraw IRA or pension funds prior to age 59 1/2 are exempt from the 10% additional tax as long as the withdrawal amount in 2026 is $10,500 or less. The limit is $10,300 for 2025.
5. The $210,000 limit applying to the maximum payment for a qualifying longevity annuity contract does not change. This limit applies for 2025 and 2026.
6. The maximum 401(k) elective deferral limit for a person under age 50 is $24,500 in 2026 and is $32,500 if the person is age 50 or older. The catch-up amount is $8,000.
The limits for 2025 are $23,500 and $31,000. The catch-up amount is $7,500.
7. Commencing in 2026 any 401 (k) participant with compensation of $150,000 must have his or her elective deferrals made to a Designated Roth Account.
8. There are two ESOP limits which are indexed and have increased.
For 2026 a participant must withdraw his/her account balance over a 5-year time period and not take a lump sum distribution when his/her income is $1,455,000 or more. For 2025 the limit is $1,415,000.
The dollar amount used to determine the lengthening of the five year distribution period is $290,000 in 2026 versus $280,000 in 2025.
© 2025 Copyright Collin W. Fritz and Associates, Ltd. “The Pension Specialists”