04:05 Issue 18

04:05 AMERICAS

Federal 2026 Limits and Thresholds Qualified Retirement Plan Deferral Limits : Section 401(k), 403(b), and 457(e) (15) plans $24,500 General additional allowed amounts for those over 50 to “catch-up” $8,000 Catch-up limit for those attaining age 60, 61, 62, or 63 in 2026 $11,250 Maximum annual addition to defined contribution plans $72,000 Roth Plan Catch-Up Wage Threshold: $150,000 SIMPLE 401(k) plans:

$17,000; $18,100 for certain plans $4,000 catch-up; $3,850 for certain plans $5,250 catch-up age 60, 61, 62, or 63 in 2026

Compensation Limit for Qualified Plans:

$360,000

Control Employee Threshold: $145,000 Highly Compensated Employee Threshold $160,000 Key Employee (Top-Heavy Plan Threshold $235,000 Foreign-Earned Income Exclusion Limit:

$132,900 if qualified under physical presence test

Maximum Exclusion for Health Flexible Spending Arrangement (FSA): Contribution Limits to Health Savings Accounts (HSA): Maximum Monthly Tax-Free Transportation Benefit: Maximum Exclusion for Employer- Provided Educational Assistance:

$3,400

$4,400 (individual coverage); $8,750 (family coverage)

$340 for qualified transit, van pools, and employer-provided parking

$5,250

2026 U.S. Business Travel Exclusions (October 2025 through September 2026) High-Low Substantiation Method Per Diem :

$319 for travel to any designated high-cost locality within the continental U.S (CONUS). $225 for travel to all other localities within CONUS.

Sources: IRS Notice 2025-67 l IRS Revenue Procedure 2025-32 l IRS Revenue Procedure 2025-19 l IRS Notice 2025-54 l GSA Per Diem Bulletin FTR 26-01 l U.S. Department of Labor Employment & Training Administration FUTA Credit Reductions $178 for travel to standard areas within CONUS; $296 for non-standard areas with higher allowed per diems, set by the agency. Travel maximums outside of CONUS are set monthly by the U.S. State Department Standard General Services Administration Per Diem :

48 I 04:05

GLOBAL PAYROLL MAGAZINE ISSUE 18

Made with FlippingBook - Share PDF online