In 2024, the Internal Revenue Service officially announced 2025 retirement plan contribution limits on Nov. 1. With the federal government in the midst of an extended shutdown, it’s not clear when the IRS will release the official 2026 retirement plan contribution limits, but there’s actually not a whole lot of suspense about what the limits will be next year—with one notable exception.
“Every key Internal Revenue Code (IRC) limit for qualified retirement plans will rise from 2025 to 2026, Mercer projects.”
Oct. 24 Mercer 2026 retirement plan limit update
Mercer and Milliman each released their final forecasts for 2026 IRS retirement plan contribution limits on Oct. 24, the same day September Consumer Price Index (CPI) data was released by the Bureau of Labor Statistics.
The IRS typically releases the next-year official contribution limits for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan in late October or early November, after calculations are made following the release of that September CPI data, which this year happened on Oct. 24 instead of the originally scheduled date of Oct. 15, 2025 (with the delay attributed to the ongoing government shutdown).
Mercer and Milliman each forecast a $1,000 boost in 2026 to the maximum 401(k), 403(b) and eligible 457 plan contribution limit for employees, which would raise the limit from $23,500 this year to $24,500 next year. The catch-up contribution limit will rise from $7,500 in 2025 to $8,000 in 2026.
But the one area where the Mercer and Milliman forecasts differ is the increase—or lack of an increase—for employees age 60-63. Mercer predicts it will rise from $11,250 this year to $12,000 in 2026, but the final Milliman forecast shows no increase from $11,250.
All of the other limit predictions in both reports are identical.
“Every key Internal Revenue Code (IRC) limit for qualified retirement plans will rise from 2025 to 2026, Mercer projects,” the Mercer update states. “The 2026 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2024 to the third quarter of 2025. This update article reflects the final CPI-U value for September.”
The Milliman update shows that, “Based on the reported CPI, we estimate the annual increase factor for the 2026 IRS limits to be about 2.9%,” and notes that there were no changes from its August forecast.
Both updates include detailed tables showing projected 2026 IRS retirement plan limits. It is important to note that regardless of when the IRS officially releases the 2026 retirement plan contribution limits—be it today, Nov. 1, or even weeks later, retirement plan deadlines do not change because of the shutdown. That means plans will need to be ready to operate under the new limits by Jan. 1, 2026.
Key 2026 IRS DC Plan Contribution Limit Projections
401(k), 403(b), or 457 plan employee contributions limit
• $24,500, up from $23,500 in 2025
Catch-up contributions (age 50 and older)
• $8,000, up from $7,500 in 2025
Catch-up contributions (age 60-63)
• Milliman: $11,250, same as $11,250 in 2025
• Mercer: $12,000
Maximum annual addition for DC plans
• $72,000, up from $70,000 in 2025
Annual compensation limit
• $360,000, up from $350,000 in 2025
Highly Compensated Employee Dollar Amount
• $160,000, same as 2025
IRAs, HSAs and ESAs
It is widely expected that due to inflation, contribution limits for IRAs will rise in 2026 for the first time in a couple of years. The base contribution limit for Traditional and Roth IRAs is expected to increase by $500, going from $7,000 in 2025 to $7,500 in 2026 (if under age 50).
For those age 50 and over by Dec. 31, 2025, the catch-up contribution limit of $1,000 in 2025 is expected to increase by $100 to $1,100 in 2026.
Traditional and Roth IRAs share this contribution limit, meaning contributions can be split between them, but you can’t contribute $7,500 to each—$7,500 is the max total to IRAs of all types in 2026.
The IRS in May announced a moderate increase to Health Savings Account (HSA) contribution limits for 2026.
Individuals with self-only coverage under a high-deductible health plan (HDHP) will have an annual limitation of $4,400, an increase of $100 compared to last year. Those with family coverage under a (HDHP) will see an annual limit of $8,750, or an increase of $200 compared to 2025 limits. Individuals who contribute to an HSA must first be enrolled in an HDHP.
The Milliman report also predicts that the contribution limit to emergency savings accounts (ESAs) for DC plans will increase by $100, from $2,500 in 2025 to $2,600 in 2026.
SEE ALSO:
• It’s Official: Social Security COLA Set at 2.8%
• $1K Boost Projected for 2026 401(k) Employee Contribution Limit
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
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