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MEC Benefits Committee
In our January 2026 Debrief article, we reported the Internal Revenue Service (IRS) had increased the standard 401(k) contribution limits to $24,500 and an $8,000 catch-up contribution for those age 50+ for a total of $32,500 contribution limit for 2026.
In addition, the IRS has carved out an $11,250 special super catch up for those aged 60 – 63 providing for a total super catch up contribution of $35,750 for this distinct age group.
For 2026, the combined employee/employer contribution limit rose to $72,000 with the total reaching $80,000 when the catch-up contributions are included. Roth 401(k) limits mirror these amounts.
Of particular importance as we consider deferring a portion of our one-time payment to our 401(k) accounts, is a notable exception for high income earners age 50+ having wages of more than $150,000 If you will be age 50 or older in 2026 and your total 2025 FICA wages (Box 3 of your W-2) with United were more than $150,000, any catch-up contributions you make in 2026 must be made on a Roth basis. You will automatically switch to Roth catch-up once the sum of your pre-tax and Roth contributions reaches $24,500.
These limits, set by the IRC Section 402(g) limit, are part of a U.S. federal law that applies to all U.S. citizens, resident aliens, and nonresident aliens, including those in U.S. territories like Guam but does not apply to those based in the United Kingdom.
The United Kingdom does not have a 402(g) limit because IRC Section 402(g) is a United States Internal Revenue Code regulation that applies specifically to US retirement plans like 401(k)s. Instead, set as part of UK law, Pension limits have been established with the following highlights:
- Annual Allowance: Limits total tax-free contributions into a pension each tax year, set at £60,000 for the 2026/27 tax year.
- Tapered Allowance: Reduces the annual allowance for high earners with an adjusted income over £260,000.
- 100% Earnings Limit: Total contributions to a defined contribution pension cannot exceed your relevant UK earnings for that tax year.
These subtleties demonstrate the importance of having consulted qualified tax professionals as you work to maximize your retirement savings when considering deferring a portion of your One-Time payment which is due in September.
If you have questions, please take advantage of the free services available to United employees at the following resources before accessing the referenced website to make a deferral election:
United Kingdom
Visit the Fidelity International UK Stakeholder Planviewer website: https://retirement.fidelity.co.uk
Fidelity International representatives are available by telephone: Monday - Friday, 8:30a - 5:30p BST at (+44) 1737 836 585.
Guam
Visit the ASC Trust website: www.mycmi401k.com/
ASC Trust representatives are available by telephone: Monday - Friday, 8:00a - 5:00p Chat at (866) 577- 9049
United States
Visit the Fidelity Net Benefits website: www.netbenefits.com
Fidelity representatives are available by telephone: Monday to Friday, 7:30 a.m. - 8:00 p.m. CT by calling (800) 603-4015.