2026 Quick Facts

Annual Limit $72,000 (or 100% of compensation)
Contribution Type Mandatory, fixed percentage each year
Flexibility Low — rate is committed in the plan document

This fixed percentage-of-pay plan will often be phased out starting in 2002 due to changes in regulation. Most of these plans will be transformed or merged into Profit Sharing plans. A company contribution of a fixed percentage is the norm for this plan.

Profit Sharing Plan
401(k)

 

Defined Contribution Plans

Defined Benefit Plan

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