Resources · Updated October 17, 2026
2026 and 2027 retirement plan limits
The IRS dollar limits that matter for Cash Balance, defined benefit, and 401(k) plans, plus the Social Security wage base and PBGC premiums, with history back to 2020.
2027 status
The 2027 Social Security wage base and PBGC premiums are final. The other 2027 figures, marked Projected, are estimates until the IRS announces them. Projected from CPI-U through September 2026 (Mercer / Marsh McLennan Agency projection, October 15, 2026). The IRS usually announces official limits in late October or early November. This page will be updated when they are announced.
Limits for 2024 to 2027
| Limit | 2024 | 2025 | 2026 | 2027Projected |
|---|---|---|---|---|
| Cash Balance and other defined benefit plans | ||||
| Defined benefit dollar limit IRC 415(b)(1)(A) Largest annual benefit a defined benefit plan can pay starting at age 62 to 65. Sets the lifetime cap on a Cash Balance account. | $275,000 | $280,000 | $290,000 | $300,000 (projected) |
| Compensation limit IRC 401(a)(17) Most pay that can be counted for benefits and contributions in any qualified plan. | $345,000 | $350,000 | $360,000 | $375,000 (projected) |
| 401(k) and profit sharing plans | ||||
| Employee deferral limit IRC 402(g)(1) Pre-tax and Roth salary deferrals to 401(k), 403(b), and governmental 457(b) plans. | $23,000 | $23,500 | $24,500 | $25,500 (projected) |
| Catch-up deferrals, age 50 and over IRC 414(v)(2)(B)(i) Extra deferrals allowed for participants age 50 or older by the end of the year. | $7,500 | $7,500 | $8,000 | $8,500 (projected) |
| Catch-up deferrals, ages 60 to 63 IRC 414(v)(2)(E) Higher catch-up for participants who reach age 60, 61, 62, or 63 during the year, in place of the regular catch-up. Began in 2025. | — | $11,250 | $11,250 | $11,750 (projected) |
| Annual additions limit IRC 415(c)(1)(A) Total employer and employee contributions to one person's defined contribution accounts for the year, not counting catch-ups. | $69,000 | $70,000 | $72,000 | $75,000 (projected) |
| Who counts as highly paid | ||||
| Highly compensated employee threshold IRC 414(q)(1)(B) Employees paid more than this in the year are highly compensated for the following plan year, along with all 5% owners. | $155,000 | $160,000 | $160,000 | $170,000 (projected) |
| Key employee threshold (officers) IRC 416(i)(1)(A)(i) Officers paid more than this are key employees for top-heavy testing, along with 5% owners and certain 1% owners. | $220,000 | $230,000 | $235,000 | $245,000 (projected) |
| Payroll and PBGC premiums | ||||
| Social Security taxable wage base SSA Pay above this isn't subject to the 6.2% Social Security tax. Used in plans that are integrated with Social Security. | $168,600 | $176,100 | $184,500 | $192,300 |
| PBGC flat-rate premium, per participant PBGC single-employer Annual premium per participant for plans covered by the PBGC. Plans covering only owners, and professional service employers with 25 or fewer active participants, are generally not covered. | $101 | $106 | $111 | $116 |
| PBGC variable-rate premium, per $1,000 of unfunded vested benefits PBGC single-employer Charged only when the plan is underfunded on the PBGC basis. Frozen at $52 by SECURE 2.0. | $52 | $52 | $52 | $52 |
| PBGC variable-rate premium cap, per participant PBGC single-employer The most the variable-rate premium can be per participant. | $686 | $717 | $751 | $783 |
History, 2020 to 2027
| Limit | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027* |
|---|---|---|---|---|---|---|---|---|
| Defined benefit dollar limit | $230,000 | $230,000 | $245,000 | $265,000 | $275,000 | $280,000 | $290,000 | $300,000 |
| Compensation limit | $285,000 | $290,000 | $305,000 | $330,000 | $345,000 | $350,000 | $360,000 | $375,000 |
| Employee deferral limit | $19,500 | $19,500 | $20,500 | $22,500 | $23,000 | $23,500 | $24,500 | $25,500 |
| Catch-up deferrals, age 50 and over | $6,500 | $6,500 | $6,500 | $7,500 | $7,500 | $7,500 | $8,000 | $8,500 |
| Catch-up deferrals, ages 60 to 63 | — | — | — | — | — | $11,250 | $11,250 | $11,750 |
| Annual additions limit | $57,000 | $58,000 | $61,000 | $66,000 | $69,000 | $70,000 | $72,000 | $75,000 |
| Highly compensated employee threshold | $130,000 | $130,000 | $135,000 | $150,000 | $155,000 | $160,000 | $160,000 | $170,000 |
| Key employee threshold (officers) | $185,000 | $185,000 | $200,000 | $215,000 | $220,000 | $230,000 | $235,000 | $245,000 |
| Social Security taxable wage base | $137,700 | $142,800 | $147,000 | $160,200 | $168,600 | $176,100 | $184,500 | $192,300 |
| PBGC flat-rate premium, per participant | $83 | $86 | $88 | $96 | $101 | $106 | $111 | $116 |
| PBGC variable-rate premium, per $1,000 of unfunded vested benefits | $45 | $46 | $48 | $52 | $52 | $52 | $52 | $52 |
| PBGC variable-rate premium cap, per participant | $561 | $582 | $598 | $652 | $686 | $717 | $751 | $783 |
* 2027: Social Security wage base and PBGC premiums are final; other figures (shown in italics) are projected.
What these limits mean for a Cash Balance plan
- The 415(b) limit sets the lifetime cap. It's an annual benefit, so the most a Cash Balance account can hold is that benefit converted to a lump sum, after a 10-year phase-in and adjustments for age. See Lifetime limit, or run the numbers in the calculator.
- The compensation limit caps the pay used. Pay above the 401(a)(17) limit is ignored for both the benefit and the 100%-of-pay part of the 415(b) limit.
- The 401(k) limits stack on top. Deferrals, catch-ups, and profit sharing up to the 415(c) limit can be added to Cash Balance contributions, subject to the combined deduction rules. See Pairing with a 401(k).
- The HCE and key employee thresholds drive testing. They decide who counts as highly paid for nondiscrimination and top-heavy rules. See Adding employees.
- PBGC premiums apply only to covered plans. Plans that cover only owners, and professional service employers (such as doctors, dentists, and lawyers) with 25 or fewer active participants, are generally exempt.
Sources: IRS: COLA increases for dollar limitations on benefits and contributions; Social Security Administration: contribution and benefit base; PBGC: premium rates. Figures are for calendar or plan years beginning in the year shown. Educational information only; confirm current figures before relying on them.