Every year, the IRS releases updated contribution limits for retirement programs, such as those sponsored by USC. These increased limits allow for additional opportunities for you to save for retirement.
The increased limits for 2026 are:
| Age (as of Dec. 31, 2026) | Increased contribution limit for 2026 |
| Less than 50 | Up to $24,500 |
| Age 50–59 or 64+ (“catch up”) | Up to $32,500 |
| Age 60–63 (“super catch-up”) | Up to $35,750 |
New rule for employees earning $150,000+ per annum
Starting in 2026, employees earning $150,000+ per annum can only make catch-up contributions as Roth (Workday will automatically direct these contributions as Roth; no employee action is required). Employees earning less than $150,000 per annum can choose pre-tax or Roth for catch-up contributions.
Employer match salary cap
The employer match salary cap for 2026 is $360,000 per annum. This is the maximum annual salary, set by the IRS, on which an employer’s match contribution can be calculated, regardless of how much an employee actually earns. For example, if an employer matches 5% of an employee’s salary and the salary cap for matching is $360,000, the maximum match amount would be $18,000, even if the employee makes more than $360,000.
From Nov. 17: Review your elections in Workday
Now is a great time to review your retirement contribution elections in Workday. You can confirm that you are taking full advantage of USC’s retirement program and prepare for any 2026 changes you want to make for January 2026.
You can use Fidelity’s Contribution Maximizer calculator to calculate optimal contribution amounts based on your salary and current contributions. Note: The tool is not a substitute for financial advice. If you need assistance using the calculator, please schedule an appointment with a USC Retirement Benefits Specialist.
From Dec 1-12: Update your elections in Workday
From Dec. 1-12, you can make changes for 2026 in Workday, and you will receive a Workday notification on that day alerting you to this. If you miss the Dec. 12 deadline, you can make your election in Workday from Jan. 1, 2026, onwards.
If you have any questions about retirement contribution limits, contact Retirement Administration at rpadmin@usc.edu.