Benefit and Contribution Limits for 2027
The Commissioner of Internal Revenue announced the 2027 dollar limitations for benefits and contributions that apply to retirement plans. The Social Security Administration increased the Social Security taxable wage base. Increases for health savings accounts were announced last spring. The following chart provides the applicable limits for 2027 and the similar limits for 2026.
Benefit Limits Under the Internal Revenue Code and Social Security | ||
|---|---|---|
| Description | 2026 Limit | 2027 Limit |
| Compensation Cap under 401(a)(17) | $360,000 | $375,000 |
| Elective Deferral Limit under 402(g)(1) for 401(k) plans, SEPs, and 403(b) plans | $24,500 | $25,500 |
| Applicable Dollar Amount for 457(b) plans | $24,500 | $25,500 |
| Catch-Up Contributions for Individuals Age 50 and Above | $8,000 | $8,500 |
| Catch-Up Contributions for Individuals who Attain Age 60, 61, 62, or 63 in 2027 | $11,250 | $11,750 |
| Defined Benefit Maximum Annual Accrual | $290,000 | $300,000 |
| Defined Contribution Maximum Annual Addition | $72,000 | $75,000 |
| Highly Compensated Employee Threshold | $160,000 | $170,000 |
| Key Employee in Top-Heavy Plans Threshold | $235,000 | $245,000 |
ESOP threshold for determining maximum account balance
| $1,455,000 $290,000 | $1,505,000 $300,000 |
| SEP Compensation Threshold for Participation | $800 | $800 |
| SIMPLE IRA Salary Reduction Contribution | $17,000 | $17,500 |
| Catch-Up Contributions for SIMPLE IRAs or SIMPLE 401(k) plans for Individuals Age 50 and Above | $4,000 | $4,000 |
| IRA Maximum Deduction | $7,500 | $7,500 |
| Social Security Taxable Wage Base | $184,500 | $192,300 |
Health Savings Account Maximum Contributions
| $8,750 $4,400 | $9,000 $4,500 |
| ACA Affordability Percentage | 9.96% | 10.22% |
This chart reflects the most commonly applicable limits only; additional limits may apply in special circumstances. It contains general, condensed summaries of actual legal matters, statutes and opinions for information purposes. It is not meant to be and should not be construed as legal advice. Individuals with particular needs on specific issues should retain our services or the services of other competent counsel.
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