The IRS, CMS and Social Security Administration have released 2026 inflation adjustments for several benefit-related provisions, including those impacting retirement plans, health savings accounts, health flexible spending accounts, Social Security and Medicare. The table below includes the updated limits. These limits potentially impact design, administration, communication and tax reporting for the related benefit plans.
| Retirement plans | 2025 | 2026 |
|---|---|---|
| Maximum recognizable compensation | $350,000 | $360,000 |
| Highly compensated breakpoint | $160,000 | $160,000 |
| §415 defined benefit limit | $280,000 | $290,000 |
| §415 defined contribution limit | $70,000 | $72,000 |
| Limit on pre-tax elective deferrals: | ||
|
$23,500 | $24,500 |
|
$31,000 | $32,500 |
|
$34,750 | $35,750 |
| Roth catch-up contribution salary threshold | $150,000 | |
| Health savings accounts (HSAs) | ||
| Individual HDHP coverage: | ||
|
$4,300 | $4,400 |
|
$1,650 | $1,700 |
|
$8,300 | $8,500 |
| Family HDHP coverage: | ||
|
$8,550 | $8,750 |
|
$3,300 | $3,400 |
|
$16,600 | $17,000 |
| Catch-up contributions* | $1,000 | $1,000 |
| Health flexible spending accounts (FSAs) | ||
| Salary reduction contribution limit | $3,300 | $3,400 |
| Carryover of unused amounts from prior year | $660 | $680 |
*These contributions are for individuals age 55 and older, prior to Medicare enrollment.
| Income replacement | 2025 | 2026 |
|---|---|---|
| FICA: | ||
|
$176,100 | $184,500 |
|
6.2% | 6.2% |
| Primary insurance amount: | ||
|
2.5% | 2.8% |
|
$48,216 | $49,824 |
| Annual retirement earnings limit: | ||
|
$23,400 | $24,480 |
|
$62,160 | $65,160 |
|
None | None |
| Medicare | ||
| FICA: | ||
|
No limit | No limit |
|
1.45% | 1.45% |
| Deductibles: | ||
|
$1,676 | $1,736 |
|
$257 | $283 |
|
$590 | $615 |
| Part A coinsurance: | ||
|
$0 | $0 |
|
$419 | $434 |
|
$838 | $868 |
| Part B coinsurance | 20% | 20% |
| Monthly Part B premium[2] | $185.00 | $202.90 |
| Monthly Part D base beneficiary premium[2] | $36.78 | $38.99 |
| Title | File Type | File Size |
|---|---|---|
| 2026 Benefit basics for pension and health and welfare plans | MB |
