By Brett Sinsabaugh, CPA, CCA, Partner
Overview of pension, HSA, and other retirement related adjustments for employers and employees
The Internal Revenue Service (IRS) announced cost of living adjustments to contribution limits for individual pension plans and other retirement-related items (Notice 2025-67). These limits become effective January 1, 2026.
Employers and employees should review these limit changes for planning purposes. Employers should be proactive in preparing for these limit changes by talking with plan recordkeepers or third-party administrators, etc. Please be mindful of limitations and timing differences impacting fiscal-year vs. calendar-year plans.
Key retirement plan adjustments 2026 vs 2025
| Plans | 2026 | 2025 |
|---|---|---|
| 401(k), 403(b) and 457(b) | ||
| -Employee Elective Deferral Limits - 401(k), 403(b) and 457 | $24,500 | $23,500 |
| -Catch-Up Contributions Limit - 401(k), 403(b), and 457(b) | $8,000 | $7,500 |
| -Defined Contribution Plan Maximum | $72,000 | $70,000 |
| -Defined Benefit Plan Maximum | $290,000 | $280,000 |
| IRA Contributions | $7,500 | $7,000 |
| -Catch-Up Contributions | $1,100 | $1,000 |
| -Note: Roth Catch-Up FICA Wage Threshold 2025 Limit, Applied in 2026 | $150,000 | |
| Executive Compensation Benefit Plan Adjustments | ||
| -Annual Compensation Maximum | $360,000 | $350,000 |
| -Highly Compensated Employee | $160,000 | $160,000 |
| -Key Employee | $235,000 | $230,000 |
| -Social Security Taxable Wage Base | $184,500 | $176,100 |
| Health Savings Accounts (HSA) | ||
| -Individual | $4,400 | $4,300 |
| -Family | $8,750 | $8,550 |
| -Catch-up Contribution (age 55 and Older) | $1,000 | $1,000 |
A detailed description of limits and thresholds can be found on the IRS website.
Keiter is focused on keeping you updated on new and changing employee benefit plan regulations that may impact individuals and businesses. Questions on this topic? Contact your Keiter Opportunity Advisor. | Call: 804.747.0000
Additional resources for employee benefit plan administrators
About the Author
Brett Sinsabaugh, CPA, CCA, Partner
Brett’s client focus is primarily in the real estate and construction industry. He also provides financial statement audit, assurance, and employee benefit plan audit services to privately-held businesses in the manufacturing, retail and distribution, and technology industries, as well as membership organizations and trade associations. Brett is a member of the Firm’s Employee Benefit Plan audit team and Real Estate and Construction industry team.
More Insights from Brett SinsabaughThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
