This blog has been updated since November 7, 2024. The data below is current.
The IRS has announced the 2026 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below set forth the applicable limitations for 2026 relative to the 2025 limitations.
Retirement Plans
The chart below represents some of the important changes the IRS has made to limitation requirements for retirement plans. The changed limitations are between the 2025 limits and the 2026 limits. If you would like to review a complete explanation of all limitation changes made to retirement plans, please see this notice published by the IRS: IRS Notice 2025-67
The IRS has also made changes to the limitation requirements for health and welfare benefit plans for 2026. If you would like to review a complete explanation of all limitation changes made to health and welfare benefit plans, please see these notices published by the IRS: Rev. Proc. 2025-19 and 26 CFR 601.602: Tax forms and instructions.
Health and Welfare Benefit Plans
One notable increase is the change to dependent care assistance programs (“DCAP”). The last increase to DCAP was in 1986 when it was raised to $5,000. The $5,000 limit remained until now – the new limit for 2026 is $7,500.