Marsh projects 2027 retirement plan limits (updated)
Every key Internal Revenue Code (IRC) limit for qualified retirement plans will rise from 2026 to 2027, according to projections by Marsh People and Investments. The 2027 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2025 to the third quarter of 2026.
This updated article reflects the final CPI-U value for September. IRS usually announces official limits for the coming year in late October or early November.
The table below shows our projections of the 2027 limits along with the actual 2026 amounts for comparison:
| IRC retirement plan limit | Projected 2027 |
2026 |
|---|---|---|
| 401(k), 403(b), and eligible 457 plan elective deferrals (and designated Roth contributions) | $25,500 | $24,500 |
| 414(v)(2)(B)(i) catch-up contributions for employees ages >=50* | ||
| For employees ages 60‒63 | 11,750 | 11,250 |
| For all other employees | 8,500 | 8,000 |
| 414(v)(7)(A) FICA wage threshold for Roth catch-up mandate† | $155,000 | $150,000 |
| 415(b) defined benefit plan annuity | 300,000 | 290,000 |
| 415(c) defined contribution plan annual addition | 75,000 | 72,000 |
| 401(a)(17) and 408(k)(3)(C) compensation | 375,000 | 360,000 |
| 414(q)(1)(B) highly compensated employee (HCE) and 414(q)(1)(C) top-paid group‡ | 170,000 | 160,000 |
| 416(i)(1)(A)(i) officer compensation for top-heavy plan key employee | 245,000 | 235,000 |
* Different limits apply to SIMPLE plans.
† Employees are subject to the Roth catch-up mandate in 2027 if their 2026 FICA wages exceed $155,000.
‡ The HCE limit shown for a year is applied to compensation for that plan year to determine if an employee is an HCE for the following plan year, e.g., an employee with 2027 plan year compensation greater than $170,000 may be an HCE for the 2028 plan year.
Related resources
Non-Marsh resource
- Chained Consumer Price index for All Urban Consumers (Bureau of Labor Statistics)
Marsh Law & Policy resources
- Summary of 2026 benefit-related cost-of-living adjustments (March 2, 2026)
- 2026 quick benefit facts (January 21, 2026)
- Quick benefit facts and COLA resources for benefit plans (2022–2026)