The Internal Revenue Service (IRS) and the Social Security Administration have announced the 2026 cost-of-living adjustment (COLA) values for defined benefit (DB) and defined contribution (DC) retirement plans and Social Security benefits. The Pension Benefit Guaranty Corporation (PBGC) has published the 2026 single-employer and multiemployer DB plan premium rates. This Client Action Bulletin provides the limits for 2026, along with the corresponding limits for 2025 and 2024.
IRS, PBGC, and Social Security figures for 2026, 2025, and 2024
To download a printable version of the below table of key figures, please click here.
| Retirement plan compensation and benefits limits | 2026 | 2025 | 2024 |
|---|---|---|---|
| Maximum annual annuity for DB plans1 | $290,000 | $280,000 | $275,000 |
| Maximum annual additions for DC plans2 | $72,000 | $70,000 | $69,000 |
| Maximum §401(k), §403(b), and §457(b) deferral3 | $24,500 | $23,500 | $23,000 |
| “Catch-up” contribution limit for DC plans Catch-up limit for those aged 60, 61, 62, or 63 |
$8,000 $11,250 |
$7,500 $11,250 |
$7,500 $7,500 |
| Compensation limit | $360,000 | $350,000 | $345,000 |
| Highly compensated employee (HCE) | $160,000 | $160,000 | $155,000 |
| Key employee/Officer compensation | $235,000 | $230,000 | $220,000 |
| Portion of emergency savings account in DC plans attributable to participant contributions | $2,600 | $2,500 | $2,500 |
| Prior-year wage threshold triggering Roth catch-up contributions to DC plans4 | $150,000 | $145,000 | $145,000 |
| PBGC premiums for applicable DB plans | 2026 | 2025 | 2024 |
| Single-employer plan flat rate premium per participant | $111 | $106 | $101 |
| Single-employer plan variable rate premium (VRP) per $1,000 of unfunded vested benefits (UVB)5 | $52 | $52 | $52 |
| Maximum single-employer plan VRP per participant | $751 | $717 | $686 |
| Multiemployer plan flat rate premium | $40 | $39 | $37 |
| Social Security thresholds | 2026 | 2025 | 2024 |
| Social Security taxable wage base (SSTWB) | $184,500 | $176,100 | $168,600 |
| Maximum OASDI payroll tax (6.2% of SSTWB) paid by both the employee and the employer6 | $11,439.00 | $10,918.20 | $10,453.20 |
| Maximum monthly Social Security benefit at SSNRA7 | $4,152 | $4,018 | $3,822 |
| National average wage base (NAWB) used to adjust limits | $69,846.57 | $66,621.80 | $63,795.13 |
| IRS qualified employer health insurance plan benefit limits | 2026 | 2025 | 2024 |
| Self-only health insurance plan coverage | |||
| HSA annual contribution8 | $4,400 | $4,300 | $4,150 |
| HDHP minimum deductible9 | $1,700 | $1,650 | $1,600 |
| HDHP maximum out-of-pocket cost | $8,500 | $8,300 | $8,050 |
| Family health insurance plan coverage | |||
| HSA annual contribution | $8,750 | $8,550 | $8,300 |
| HDHP minimum deductible | $3,400 | $3,300 | $3,200 |
| HDHP maximum out-of-pocket cost | $17,000 | $16,600 | $16,100 |
| All health insurance plan coverages | |||
| HSA “catch-up” contribution for ages 55 and older | $1,000 | $1,000 | $1,000 |
For additional information about the 2026 cost-of-living adjustments for retirement plans, Social Security benefits, and HSAs and HDHPs, please contact your Milliman consultant.
Sources: IRS Notice 2025-67, 2026 Social Security Fact Sheet, Social Security National Average Wage Index web page, PBGC premiums web page, IRS Revenue Procedure 2025-19.
1 The maximum annual DB plan annuity is specified under Internal Revenue Code (IRC) §415(b)(1)(A) and may need an actuarial adjustment if the retirement date is before age 62 or after age 65, or if the participant’s elected form of payment is not a single life annuity.
2 The maximum annual additions to a DC plan are specified under IRC §415(c)(1)(A) and are the sum of any employee pre-tax or Roth elective deferral contributions (excluding catch-up contributions), employee non-Roth after-tax contributions, employer contributions (matching, profit-sharing, or other nonelective), and any reallocated forfeitures.
3 The employee’s annual DC plan limit on elective deferral contributions is specified under IRC §402(g)(1)(B) applicable to 401(k) and 403(b) plans, with an identical but separate limit under IRC §457(e)(15)(A) as applicable to 457(b) plans.
4 The Roth catch-up wage threshold for 2025, used to determine whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions, is increased from $145,000 to $150,000.
5 “UVB” in the PBGC section of the table refers to unfunded vested benefits for single-employer and multiple employer DB plans. It is the deficit, if any, between the PBGC variable rate premium (VRP) value of accrued benefits and the value of the plan’s assets. There are no VRPs for multiemployer DB plans.
6 “OASDI” is the Social Security Old-Age, Survivors, and Disability Insurance program. The OASDI payroll tax rate is 6.20% on wages up to the taxable wage base. Both the employer and the employee pay OASDI payroll tax.
7 An individual will attain their Social Security full (normal) retirement age (SSNRA) of 66 and 10 months in 2026 if they were born after March 1, 1959, and on or before January 1, 1960, and will be eligible to commence unreduced Social Security benefits in 2026. People born on March 1, 1959, or earlier have a lower SSNRA, and the SSNRA is 67 for those born after January 1, 1960.