IRS raises 2026 retirement contribution limits, what monday.com employees need to know
The IRS lifted the 2026 401(k) limit to $24,500, while monday.com workers may be able to lean on a 3% company contribution to save more without waiting until year-end.
The new $24,500 401(k) limit is more than a tax-table update for monday.com employees. It is a reminder that retirement savings only work when payroll, HR and managers make the rules easy to understand before the year gets away from people.
The Internal Revenue Service said the 2026 elective deferral limit for most 401(k), 403(b), governmental 457 and Thrift Savings Plan participants rises to $24,500 from $23,500 in 2025. The standard catch-up contribution for workers age 50 and older increases to $8,000, which can bring many savers to a total of $32,500. For employees who attain ages 60, 61, 62 or 63 in 2026, SECURE 2.0 allows a higher catch-up amount of $11,250. The annual additions limit for defined-contribution plans climbs to $72,000, and the compensation cap used in retirement-plan calculations rises to $360,000.
The IRS also increased IRA contribution limits to $7,500 for 2026, with traditional IRA deduction phase-out ranges starting at modified adjusted gross income of $129,000 for married filing jointly taxpayers, $81,000 for single filers or head of household, and less than $10,000 for married filing separately. The agency released the changes on Nov. 13, 2025 in Notice 2025-67 and IR-2025-111 as part of its annual cost-of-living adjustments.
For monday.com employees, the new ceiling matters because compensation planning does not stop at salary and equity. monday.com is reported to offer a 401(k) plan managed by ADP, and one benefits source says the company contributes 3% of an employee’s annual gross pay regardless of whether the worker contributes. That structure makes the IRS increase especially relevant for engineers, product managers and sales professionals who want to decide early how much of each paycheck should go into the plan.
The timing matters as much as the amount. Vanguard data cited in coverage of the IRS changes showed only 14% of participants maxed out their 401(k) plans in 2024, which suggests most workers still leave room unused. At a company like monday.com, where employees track product launches, quota cycles and stock performance in real time, retirement savings deserves the same attention. Checking contribution percentages in January, not December, is the simplest way to avoid missing months of tax-advantaged saving and to make the most of whatever match or company contribution is available.
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