The Internal Revenue Service (IRS) announced the 2026 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2026. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b), and 457(b) plans; the annual compensation limit under 401(a)(17); and the maximum annual contribution limit under Code Section 415(c) will increase from 2025 limits. The dollar limit for catch-up contributions for participants who attain age 60,61,62, or 63 in 2026 will remain the same.
RETIREMENT PLAN LIMITS
| 2026 Limits | 2025 Limits | |
| 401(k)/403(b)/457(b) elective deferrals | $24,500 | $23,500 |
| Catch-up contribution (other than SIMPLE 401(k) plans) | $8,000 | $7,500 |
| Catch-up contributions for participants who attain age 60,61,62, or 63 in 2026 (other than SIMPLE 401(k) plans | $11,250 | $11,250 |
| Roth catch-up FICA wage threshold | $150,000 | $145,000 |
| SIMPLE 401(k) plan employee deferrals | $17,000 | $16,500 |
| SIMPLE 401(k) plan catch-up contributions | $4,000 | $3,500 |
| SIMPLE 401(k) plan catch-up contributions for participants who attain age 60,61,62, or 63 in 2026 | $5,250 | $5,250 |
| Maximum annual contribution – defined contribution plans (Section 415(c)) | $72,000 | $70,000 |
| Maximum annual benefit – defined benefit plans (Section 415(b)) | $290,000 | $280,000 |
| Compensation limit under Section 401(a)(17) | $360,000 | $350,000 |
| Highly compensated employee definition under Section 414(q) | $160,000 | $160,000 |
| Key employee officer compensation for top-heavy plans | $235,000 | $230,000 |
| ESOP limit for determining the maximum account balance subject to the five-year distribution limit | $1,455,000 | $1,415,000 |
| ESOP dollar amount used for determining the lengthening of the five-year distribution period | $290,000 | $280,000 |
Health Savings Account and High-Deductible Health Plan Limits
Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account (HSA) and high-deductible health plans for 2026. The HSA limit for self-only/family coverage will increase to $4,400 and $8,750, respectively for 2026. The maximum annual out-of-pocket expense limits for high-deductible health plans for self-only and family coverage will increase in 2026.
| 2026 Limits | 2025 Limits | |
| HSA Contribution — Annual Contribution Limit | ||
| Self-only coverage | $4,400 | $4,300 |
| Family coverage | $8,750 | $8,550 |
| Catch-up contributions (age 55 or older) | $1,000 | $1,000 |
| High-Deductible Health Plan – Minimum Annual Deductible | ||
| Self-only coverage | $1,700 | $1,650 |
| Family coverage | $3,400 | $3,300 |
| High-Deductible Health Plan – Maximum Out-of-Pocket Limit | ||
| Self-only coverage | $8,500 | $8,300 |
| Family coverage | $17,000 | $16,600 |
HEALTH FLEXIBLE SPENDING ACCOUNTS
The IRS also released the health flexible spending account (FSA) contribution rate for 2026. The rate increased to $3,400 for 2026. The carryover amount increased from $660 to $680 for 2026.
| 2026 Limit | 2025 Limit | |
| Health FSA contribution limit | $3,400 | $3,300 |
| Carryover amount | $680 | $660 |
SOCIAL SECURITY WAGES BASE
Social Security Wage Base
| 2026 Limit | 2025 Limit | |
| Social Security (FICA) wage base | $184,500 | $176,100 |