Contribution limits: Workplace retirement plans. (Photo: Shutterstock)
The official IRS announcement will come in late October or early November, but it's likely participants will see a modest $1,000 increase to the amount they can contribute to their 401(k)s in 2026, according to Milliman’s 2026 Internal Revenue Service Limits Forecast.
The consulting firm projects limit to rise from $23,500 this year to $24,500 next year for 401(k), 403(b) and most 457 plans, as well as the Thrift Savings Plan the defined contribution retirement plan for federal workers.
For employees (ages 60-63), the catch-up contribution limits would remain at $11,250 in 2026. As implemented by SECURE 2.0 regulations, employees aged 60 to 63 can make higher catch-up contributions to their retirement plans, as of 2025. For all other employees, the catch-up contribution limits could rise from $7,500 in 2026 to $8,000.
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Milliman’s projections are based on the current 12 months of Consumer Price Index as well as the assumption that year-to-date CPI (since September 30, 2024) will continue to increase monthly through September 30, 2025 by an estimated 25 basis points.
Inflation in the 12 months ending March 31, 2025 was 2.4% as reported by the U.S. Bureau of Labor Statistics (BLS) on April 10, 2025, according to Milliman. This is the same as the 2.4% annual change in CPI as of September 30, 2024 while being lower than the 2.9% average annual change over the past 10 years ended September 30, 2024 and the 2.6% average annual change over the past 20 years ended September 30, 2024.
Related: 401(k) contribution limit projections for 2025: Mercer, Milliman
To calculate the 2026 contribution limits, the IRS will use the 12 months of the reported Consumer Price Index (CPI) to calculate the 2026 IRS limits. The IRS could release its 2026 limits in October or November 2025. Last year, the IRS announced the retirement contribution limits for 2025 on Nov. 1, 2024.
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
