Inflation-Adjusted Limits on Retirement Plans, Including Maximum Benefits and Contributions (2022-Present)

Type of Limitation 2027[1] 2026 [2] 2025 [3] 2024 [4] 2023 [5] 2022 [6]
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups) $25,500 $24,500 $23,500 $23,000 $22,500 $20,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups) $25,500 $24,500 $23,500 $23,000 $22,500 $20,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Over Age 50 [7] $8,500 $8,000 $7,500 $7,500 $7,500 $6,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Ages 60-63 [8] $11,750 $11,250 $11,250 NA NA NA
Social Security wages requiring Roth to be used for catch-up [9] $155,000 $150,000 NA NA NA NA
Defined Benefit Plans $300,000 $290,000 $280,000 $275,000 $265,000 $245,000
Defined Contribution Plans (annual additions limit) $75,000 $72,000 $70,000 $69,000 $66,000 $61,000
Annual Compensation Limit $375,000 $360,000 $350,000 $345,000 $330,000 $305,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $555,000 $535,000 $520,000 $505,000 $490,000 $450,000
Highly Compensated Employee (“HCEs”) $170,000 $160,000 $160,000 $155,000 $150,000 $135,000
Key Employee/Officer $245,000 $235,000 $230,000 $220,000 $215,000 $200,000
Individual Retirement Accounts (“IRAs”), for individuals 49 and below $7,500 $7,500 $7,000 $7,000 $6,500 $6,000
Individual Retirement Accounts (“IRAs”), for individuals 50 and above $8,600 $8,600 $8,000 $8,000 $7,500 $7,000
SIMPLE Retirement Accounts $17,500 $17,000 $16,500 $16,000 $15,500 $14,000
SEP Coverage $800 $800 $750 $750 $750 $650
SEP Compensation $375,000 $360,000 $350,000 $345,000 $330,000 $305,000
Tax Credit ESOP Maximum Balance $1,505,000 $1,455,000 $1,415,000 $1,380,000 $1,330,000 $1,230,000
Amount for Lengthening of 5-Year ESOP Period $300,000 $290,000 $280,000 $275,000 $265,000 $245,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases $220,000 $210,000 $210,000 $200,000 $155,000 $145,000
Income Subject to Social Security Tax $192,300 $184,500 $176,100 $168,600 $160,200 $147,000
FICA Tax for employers 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
FICA Tax for employees 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
Social Security Tax for employers 6.20% 6.20% 6.20% 6.20% 6.20% 6.20%
Social Security Tax for employees 6.20% 6.20% 6.20% 6.20% 6.20% 6.20%
Medicare Tax for employees and employers [10] 1.45% 1.45% 1.45% 1.45% 1.45% 1.45%
SECA Tax for self-employed workers 15.30% 15.30% 15.30% 15.30% 15.30% 15.30%
Social Security Tax for self-employed workers 12.40% 12.40% 12.40% 12.40% 12.40% 12.40%
Medicare Tax for self-employed workers 2.90% 2.90% 2.90% 2.90% 2.90% 2.90%

Footnotes:

1. 2027 limits reflect issuance of IRS Notice 2026-66 (Nov. 12, 2026) and Social Security Administration Press Release (Oct. 14, 2026).
2. 2026 limits reflect issuance of IRS Notice 2025-67 (Nov. 13, 2025) and Social Security Administration Press Release (Oct. 24, 2025).
3. 2025 limits reflect issuance of IRS Notice 2024-80, 2024-47 I.R.B. 1120 (Nov. 18, 2024) and Social Security Administration Press Release (Oct. 10, 2024).
4. 2024 limits reflect issuance of IRS Notice 2023-75, 2023-47 I.R.B. 1256 (Nov. 20, 2023) and Social Security Administration Press Release (Oct. 12, 2023).
5. 2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (Nov. 7, 2022) and Social Security Administration Press Release (Oct. 13, 2022).
6. 2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (Nov. 22, 2021) and Social Security Administration Press Release (Oct. 13, 2021).
7. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which also must be considered in appropriate cases.
8. This additional catch-up became effective in 2025.
9. The requirement that catch-ups be made as Roth, when Social Security wages are above a certain limit, became effective in 2026.
10. Beginning in 2013, a 0.9 percent Additional Medicare Tax applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.

Editor's note: BenefitsLink gratefully acknowledges the work in this chart was taken in very large part from work done by Carol V. Calhoun, a prominent employee benefits attorney who has retired from the practice of law. Attorney Calhoun was a pioneer in the use of the internet to convey information to practitioners, to whom the industry and especially this website are indebted. Her chart continues to be published online.