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More DCP savings in 2026

Posted on December 2, 2025

The IRS limits have increased for retirement savings programs like Washington’s Deferred Compensation Program (DCP).

Beginning Jan. 1, you can contribute up to $24,500 per year.

Age 50 or older: you can contribute an additional $8,000 beyond the limit ($32,500 for 2026).

For highly compensated employees ($150,000 in FICA wages for 2025), who are age 50 or older, the additional $8,000 may be required as Roth contributions.

These limits apply to DCP Roth and pretax contributions. That means whether you contribute to Roth, pretax or both DCP options, it’s a combined total.

If you’re already a DCP participant, now’s a great time to consider increasing your contributions.

If you’re not a participant and your employer offers DCP, consider signing up. The new limits are effective Jan. 1, 2026. But depending on your employer’s payroll, it can take up to 30 days for your account changes to go into effect. So, if you want to begin saving in the new year, you might want to start your changes now.

How much do DCP customers save each month?

The DCP program makes it easy to save for retirement. Even a minimum monthly contribution of 3% of your salary can add up to big savings over time. The most common percentages saved are 10%, 5% and 3%.