Changes to the Microsoft 401(k) effective Jan. 1, 2026

401(k) catch-up contribution changes for 2026

Roth ONLY catch-up contributions for some employees—starting in 2026, to comply with recent legislation,* employees who are (or by the end of the year will be) at least 50 years old and earned $150,000 (indexed annually) or more in Microsoft FICA wages (see the Social Security wages and tips box on your W-2) during the previous calendar year will be permitted to make catch-up contributions to their Microsoft 401(k) Plan account on a Roth basis only. Regular (non-catch-up) contributions can still be made on a pre-tax and/or Roth basis, up to $24,500 in 2026; once that limit is reached, catch-up contributions will automatically begin on a Roth basis.

Increased catch-up contributions for ages 60-63—also starting in 2026, as authorized by recent legislation,* individuals who will be aged 60 to 63 as of December 31st will be eligible for increased catch-up contributions for that year. For these individuals, the 2026 maximum catch-up contribution will be $11,250 (as opposed to the $8,000 maximum catch-up contribution for all other eligible individuals).

There is no action needed from you to implement either of these changes. If you are eligible for either or both of these changes, you will receive more information via email towards the end of 2025, and will see additional information on Fidelity NetBenefits beginning in January 2026.

*Both of these changes are driven by legislative changes enacted in 2022 under the Setting Every Community Up for Retirement Enhancement Act 2.0 or "SECURE 2.0".

401(k) contribution limit changes for 2026:

• The regular pre-tax/Roth contribution limit will increase from $23,500 to $24,500.
• The maximum Microsoft matching contribution limit will increase from $11,750 to $12,250.
• The after-tax (non-Roth) contribution limit will increase from $34,750 to $35,250.
• The regular catch-up contribution limit (ages 50+) will increase from $7,500.
• The Super catch-up contribution limit (ages 60-63) will be $11,250.