State Agencies Bulletin No. 2403

Subject
Deferred Compensation Maximum Contributions Limits for Calendar Year 2026
Date Issued
December 26, 2025

Purpose:

The purpose of this bulletin is to notify agencies of the following maximum contribution limits for employees enrolled in the New York State Deferred Compensation Plan for the calendar year 2026

Background:

Pursuant to IRS IR-2025-67, released on November 13, 2025:

  • The regular yearly contributions amount for Deferred Compensation will increase from $23,500.00 to $24,500.00.
    • The catch-up contribution limit that generally applies for employees aged 50 and over increases to $8,000.00 for 2026 for a combined maximum contribution limit of $32,500.00 in 2026.
    • Effective January 1, 2025, Section 109 of the Secure 2.0 Act increases the catch-up contribution limit for active participants turning ages 60, 61, 62, or 63 in the calendar year to either $10,000.00 or 50% more than the regular catch-up contribution limit, whichever is greater. This catch-up contribution limit is set at $11,250.00 for 2026 for a combined maximum contribution limit of $35,750.00.
  • The Deferred Compensation “Retirement Catch-Up” provision, available to employees in each of the last three years prior to normal retirement age, increases from $23,500.00 to $24,500.00, for a combined maximum contribution of $49,000.00 for calendar year 2026.
  • Effective January 1, 2026, Section 603 of the Secure 2.0 Act states that participants who earned at least $150,000.00 in FICA wages in the prior calendar year must contribute their Over 50 Catch-up contribution as Roth deductions.

Employees are not eligible to choose both the “Retirement Catch-Up” and the “50 and Over Catch-Up” in the same calendar year.

Affected Employees:

Employees enrolled in the New York State Deferred Compensation Plan are affected.

Effective Dates:

January 1, 2026

OSC Actions:

OSC will update PayServ to reflect the maximum contribution limits for calendar year 2026 and will process the additional catch-up contribution limits as provided by the Deferred Compensation vendor.

Questions:

Questions regarding this bulletin, including questions regarding annual and applicable catch-up limits, may be directed to the New York State Deferred Compensation Plan or by calling the helpline at 1-800-422-8463.