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
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.
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.
SOCIAL SECURITY WAGES BASE
Social Security Wage Base
